The surge in memory chip prices driven by expanding artificial intelligence (AI) investment could spread to higher premium smartphone prices, according to projections. Some observers say the retail price of top-spec foldable phones could exceed 3 million won.
According to IT news source Lanzuk, the Galaxy Z Flip8, scheduled for release in August, is expected to cost about $1,200 (about 1.82 million won), while the Galaxy Z Fold8 Ultra could reach $2,100 (about 3.19 million won), the source said Saturday.
These figures far exceed the domestic launch starting prices of the previous models, the Galaxy Z Flip7 at 1.485 million won and the Galaxy Z Fold7 at 2.3793 million won.
Apple appears unlikely to avoid the impact of soaring component prices. The starting price of the iPhone 18 Pro, to be unveiled in September, is projected at $1,299 (about 1.99 million won).
That is $200 (about 410,000 won) higher than the iPhone 17 Pro's starting price of $1,099. "We tried to minimize the price increase, but it reached an unmanageable level," Apple CEO Tim Cook said. "Unfortunately, the price increase is unavoidable."
The industry cites the memory supply shortage caused by expanding AI investment as the main reason for rising smartphone prices. According to TrendForce, mobile DRAM prices are projected to rise as much as 98% in the second quarter of this year from the first quarter. This means costs nearly doubled in a single quarter.
Manufacturers facing worsening profitability are growing more concerned. Meritz Securities projected that the operating profit of Samsung Electronics' MX (Mobile eXperience) division would decline from 12.9 trillion won last year to 4.5 trillion won this year.
A steep rise in smartphone prices is likely to inevitably weaken consumer demand. Counterpoint Research expects global smartphone shipments this year to reach 1.008 billion units, down 13.9% from the previous year, marking the lowest level in 13 years.
