The surging cost of memory chips, driven by growing AI investment, could push prices for top-tier smartphones past 3 million won ($1,950), according to industry forecasts.
IT tipster Lanzuk said Sunday (local time) that the Galaxy Z Flip 8, set for release in August, is expected to carry a price of around $1,200 (about 1.82 million won), while the Galaxy Z Fold 8 Ultra could reach as high as $2,100 (about 3.19 million won).
Those figures would represent a sharp increase over the domestic starting prices of their predecessors — the Galaxy Z Flip 7 at 1,485,000 won and the Galaxy Z Fold 7 at 2,379,300 won.
Apple is also feeling the impact of soaring component costs. The iPhone 18 Pro, expected to be unveiled in September, is forecast to start at $1,299 (about 1.99 million won).
That would be $200 (about 410,000 won) more than the iPhone 17 Pro's starting price of $1,099. Apple CEO Tim Cook said the company had tried to limit price increases but that they had become unavoidable. "We tried to minimize the price hikes, but they reached a level we could no longer absorb," he said. "Unfortunately, price increases are inevitable."
Industry observers point to a memory supply crunch fueled by rising AI investment as the main driver of the price surge. Market research firm TrendForce projects that mobile DRAM prices in the second quarter of this year will climb as much as 98 percent from the first quarter — nearly doubling component costs in a single quarter.
Manufacturers are grappling with deteriorating profitability as a result. Meritz Securities forecast that Samsung Electronics' MX (Mobile Experience) division operating profit will fall from 12.9 trillion won last year to 4.5 trillion won this year.
The steep rise in smartphone prices is also expected to dampen demand. Counterpoint Research projected that global smartphone shipments this year will total about 1.008 billion units, a 13.9 percent decline from the previous year that would mark the lowest level in 13 years.
bbo@heraldcorp.com
