Samsung unveils passport-sized Galaxy Z Fold8, raises foldable prices as chip costs climb

SEOUL: Samsung Electronics unveiled three new foldable smartphones on Wednesday, including a wider passport-sized model, while raising prices as higher memory chip costs squeeze margins and Apple prepares to enter the category.

The Galaxy Z Fold8, designed with a wider screen for video-heavy users, has been priced at $1,899. Samsung raised the prices of the premium Galaxy Z Fold8 Ultra and clamshell-style Flip8 by $100 compared with their predecessors, to $2,099 and $1,199, respectively.

The three models, launched at an event in London, are powered by Alphabet’s Gemini artificial intelligence.

Samsung pioneered foldable smartphones, but analysts expect its position to face a significant challenge this year when Apple launches its first foldable phone, reportedly with a screen similar in size to an iPad mini.

“Strategically, this is one of Samsung's most important foldable launches,” said Francisco Jeronimo, vice president at researcher IDC. “Samsung has to defend the category it created, and that's why it cannot play it safe.”

IDC expects Samsung to increase its global smartphone market share in 2026, even as the overall market contracts by a record 14%, partly because of a shortage of memory chips. Foldable smartphone shipments, however, are forecast to rise 20%.

Some analysts expect Samsung’s mobile division to record its first quarterly loss in the April-June period as rising chip prices reduce profit margins. The same price increases are expected to lift margins at the company’s semiconductor business to record levels.

Memory and storage account for more than 60% of material costs in budget smartphones and more than 30% in premium devices, according to Omdia.

“Memory is a much smaller share of the bill of materials on a device above $1,500 than on a mid-range phone, so there is more room to absorb higher chip prices at the top-end,” said Omdia senior analyst Sheng Win Chow.

“The harder question is what justifies the price. A bigger screen alone is no longer enough,” he added.

The Fold8 and Fold8 Ultra use Qualcomm’s latest processor, while the Flip8 will be equipped with either a Qualcomm chip or Samsung’s Exynos processor, depending on the market.