Samsung actually decided to take a financial hit in order to bring this year’s foldables our way. Well, that’s at least what TM Roh said. The company apparently to absorb costs for the Samsung Galaxy Z Fold 7 and Galaxy Z Flip 7 internally, in order not to increase prices.
Samsung decided to take a financial hit in order to keep prices of its foldables (mostly) the same
Samsung MX boss, TM Roh, explained that production costs for the Galaxy Z Fold 7 and Samsung Galaxy Z Flip 7 were higher this year. Why? Well, due to the innovations that they bring. For example, a thinner profile, a lighter body, and a new main camera on the Fold 7. In the case of the Flip 7, its new cover display is a good example.
In any case, TM Roh said that in order “to expand foldable phones and democratize AI experiences, we decided to absorb those costs internally.” He said that while referring to the aforementioned costs.
Samsung has not raised prices for either device in some markets. In the US, the Galaxy Z Flip 7 has the same price tag as the Samsung Galaxy Z Flip 6 had, but the Fold 7 is more expensive. It’s more expensive by only 6%, though, which in terms of the company’s costs doesn’t seem to be a lot, based on what TM Roh said.
Samsung’s profit margins will suffer
Samsung has opted to take a hit on its margins for both devices. Which essentially means that the company is ready to make less profit from both phones in order to be more competitive in the market. The competition released some impressive foldables in the last couple of years, so… Samsung wants to stay on top.
This is, almost certainly, a reaction to the Galaxy Z Flip series sales. Well, at least partially. The Galaxy Z Flip 6 sales were allegedly down 21% compared to the Samsung Galaxy Z Flip 5. Raising its price would likely have a further negative effect on the series.
The post Samsung Takes a Hit to Keep Foldable Prices (Mostly) the Same appeared first on Android Headlines.
