Samsung raises prices on key foldables & s25 edge – ai's fault?
South Korea’s smartphone market just got a jolt. Samsung is quietly implementing price hikes on higher-storage versions of its Galaxy Z Fold 7, Galaxy Z Flip 7, and Galaxy S25 Edge models, effective April 1st. While the company cites currency fluctuations, the real culprit lurking behind this move is the relentless demand fueled by the AI boom.
The price breakdown: how much will you pay more?
The increases aren’t insignificant. For those eyeing the 512 GB variants of these devices, expect to shell out an extra KRW 100,000 (roughly $65). Stepping up to the 1 TB models demands a KRW 200,000 (around $130) premium. Lower storage configurations, however, remain untouched for now.
Let’s put this in perspective. A Galaxy Z Fold 7 (512 GB) now carries a price tag of KRW 2,637,700 ($1,724), a KRW 100,000 jump from its initial launch price. The Galaxy Z Flip 7 (512 GB) sees a similar KRW 100,000 increase, bringing it to KRW 1,743,400 ($1,140). The Galaxy S25 Edge (512 GB) now retails for KRW 1,739,000 ($1,137), also KRW 100,000 higher than at launch.
Beyond the won: a strategic maneuver?
Samsung’s explanation points to the weakening Korean Won, currently at a 17-year low. While that undeniably contributes, a closer look suggests a more calculated move. Why target the Z Fold 7, Z Flip 7, and S25 Edge specifically? These models, while innovative, haven’t exactly set sales charts ablaze. Moreover, with the Galaxy Z Fold 8 and Z Flip 8 looming on the horizon this summer, Samsung might be subtly clearing inventory while capitalizing on the current memory price surge.
The company’s previous launch of the Galaxy S26 also saw price increases relative to the S25 series, even when RAM and NAND storage were comparatively affordable. This suggests a willingness to adjust pricing based on market conditions and component costs, even if it means squeezing consumers a bit.
The home market advantage
Crucially, this price hike is confined to South Korea, Samsung's domestic market. Here, the chaebol – large, family-controlled conglomerates – wields considerable influence, and consumers are generally more forgiving of such adjustments. Trying this in Western markets, where consumer scrutiny is far more intense, would likely spark a firestorm of criticism.
Will this become the new normal? The question lingers: will we see these higher prices become standard across all future Galaxy models, particularly for the 512 GB and 1 TB options? It’s a gamble for Samsung, but the rising cost of RAM, driven by AI's insatiable appetite, makes it a distinct possibility. The relentless demand for memory—to power everything from generative AI models to your humble smart refrigerator—is reshaping the electronics landscape, and consumers are feeling the pinch.
The memory market remains unstable, and the ramifications of this situation will be felt across the industry. While we grapple with the implications of increasingly sophisticated AI – perhaps even witnessing our digital assistants sketching bizarre mashups of Mario and Darth Vader – one thing is clear: the price of progress isn’t getting any cheaper.