In the world of foldable phones, Samsung just made a bold play with its new Galaxy Z Flip 7. While new tech usually comes with a higher price tag—especially amid the tariff uncertainty—the device surprisingly launched at the same cost as its predecessor. So, how did Samsung manage this trick? The answer seems to lie a decisive shift towards its in-house Exynos chip that allowed them to freeze the price of the Samsung Galaxy Z Flip 7.
Using Exynos chips allowed Samsung to freeze the Galaxy Z Flip 7 price
Industry watchers are pointing to Samsung’s evolving strategy around its mobile processors. By fully embracing the Exynos 2500 for the Flip 7, the company managed to trim component costs significantly. The “brain” of a smartphone, the Application Processor (AP), can account for roughly 30% of the total manufacturing cost. This makes the choice of AP a major factor in pricing. Historically, Samsung has often mixed Exynos with Qualcomm’s more expensive Snapdragon chips. But this time, Exynos took the lead for the Flip 7, even in the US.
This isn’t just about saving a few dollars. Samsung explained this Galaxy Z Flip 7 price freeze as a strategic move to “popularize foldable phones.” The company aims to make cutting-edge foldable technology more accessible and popular. The launch of the Galaxy Z Fold 7 FE—also Exynos powered—is another movement in that line. Roh Tae-moon, a key figure at Samsung, emphasized that despite innovations adding to costs, they absorbed these increases internally to make the foldable experience more mainstream (via Jukanlosreve).
The movement could bring initial losses
Interestingly, this full commitment to Exynos comes even as some analyses suggest its 3nm Exynos 2500 chip might still have a relatively low production yield. This could be leading to short-term losses for Samsung’s manufacturing division. However, from a broader company perspective, using their own chips is seen as more cost-efficient than buying from external suppliers like Qualcomm. Plus, continuous production, even at a loss initially, helps refine the chip’s performance and yield for the long run. It’s a strategic investment in their own technology.
The potential success of the Galaxy Z Flip 7 with its Exynos heart is now a crucial test. If it performs well in the market and receives positive reviews, it could pave the way for a much wider adoption of Exynos in Samsung’s future flagship devices, including the highly anticipated Galaxy S series. This would not only reduce costs further but also solidify Samsung’s independence in chip production. The tech world will be watching closely to see if this bold Exynos bet pays off.
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