Samsung launches its priciest smartphone lineup ever amid chip cost crunch
Soaring raw material prices have made the Galaxy Z Fold 8 series Samsung's most expensive range yet, even as the company works to buffer consumers from the full brunt of chip inflation.
London/New Delhi: South Korean smartphone and appliances maker Samsung launched its eighth generation of foldable phones—its most expensive lineup so far—on Wednesday, amid a global supply-chain crunch for electronics raw materials such as memory chips.
The latest foldable lineup includes Galaxy Z Flip 8, Fold 8 and 8 Ultra. Of this, the passport-shaped Z Fold 8 is an all-new device and the third one in Samsung’s foldable phone lineup. The Z Fold 8 Ultra replaces last year's Z Fold 7 and is slimmer and lighter now, while the Flip 8 replaces the Flip 7.
Prices of Samsung’s foldables rose on the back of memory chip price hikes globally. The Galaxy Z Fold 8 Ultra is the company’s most expensive smartphone to date, with a starting price of ₹2 lakh going all the way up to ₹2.6 lakh for the top variant. The Z Fold 8, at ₹1.8 lakh, costs ₹5,000 more than the Z Fold 7. The Z Flip 8, at ₹1.25 lakh, is ₹15,000 more expensive than its predecessor.
Samsung currently is absorbing much of the supply chain price hikes to pass as little as possible to consumers compared to its competitors, according to analysts.
Wednesday’s launch is significant as Samsung’s Z Fold series accounted for 9 out of every 10 foldable phones sold in India last year—an industry that generated nearly $900 million in full-year sales, as per supply chain analysts.
‘Unprecedented situation’
Sunghoon Moon, Samsung’s executive vice-president and a senior executive of its research and development (R&D) office, told reporters during a roundtable ahead of the launch, “In my 20 years or so working in this industry, this recent spike in price, not just memory but raw materials overall, is an unprecedented situation that I never experienced before."
“As an engineer, my role against this backdrop is to ensure that this burden is not passed on to the consumers, while we continue to meet our high quality standards in our products. As you can all hear, that is seemingly impossible. However, to make it possible all our colleagues at Samsung are doing our best,” Moon added.
The launch comes less than two months before Apple, Samsung’s biggest global smartphone rival, is expected to launch the first foldable iPhone this September. While it remains to be seen if Apple’s entry into this segment opens the market up, Samsung is expected to comfortably remain in the lead until at least the end of 2026.
Still a niche product
While Samsung was the first mainstream global brand to launch a foldable phone, its very first attempt in 2019 was plagued with durability concerns. Seven years and eight iterations since the original Galaxy Fold, foldable smartphones are yet to become as affordable or durable as regular smartphones, and have thus failed to break into the mainstream.
Tarun Pathak, director of research at market research firm Counterpoint, said foldable smartphones continue to play a very minor role in India’s smartphone ecosystem. “Last year, India sold only 600,000 foldable phones, about 0.4% of the industry. This year, while foldables may grow by 15% because of a small base, the overall market may shrink by 13%. Even then, foldables will account for just over 0.5% of India’s annual smartphone sales. They still remain within the confines of those who value the wow factor of a foldable, or business owners who have become used to their multitasking ability,” Pathak added.
Memory chip prices have more than tripled over the past year, driven by relentless demand from AI data centers, according to Counterpoint. WhileMintpreviously reported smartphone price hikes of up to 40% due to supply chain strain, ongoing AI consumption means memory costs won't drop anytime soon. As a result, smartphone prices in India are up 15% overall compared to last year.
Globally, at $1,800 ( ₹1.75 lakh), foldables cost nearly five times as much as the average selling price of a normal smartphone in India. “Until this cost rationalizes, it is unlikely that foldable phones will see any breakthrough,” Counterpoint’s Pathak said.
Notwithstanding the higher prices, Samsung claims to have solved the two other major issues that have kept foldables on the fringes by using a new titanium-based material to make the phones thinner and lighter, and a new display technology with “barely visible creases”.
Financing foldables
To make its new phones more affordable, Samsung will offer a 30-month, zero-interest installment plan. Aditya Babbar, vice president of mobile experience at Samsung India, told Mint that the company is telling customers “that we have decreased the price of Fold 8, because the per-month EMI (equated monthly installment) is reduced by ₹1,000 with a 30-month financing plan”.
Last month, Kailash Lakhyani, founding chairman of industry body All India Mobile Retailers Association (Aimra), wrote to phone brands on behalf of Indian electronics retailers, urging them to offer 36-month financing plans to ease the cost pressure on consumers and boost sales.
India’s smartphone ecosystem remains in a prolonged slump. On Wednesday, tech consulting firm Techarc and Aimra’s retailer report said nearly half of the country’s more than 1,100 mobile phone sellers believe they may have to shut shop if the sales slump persists.
Despite the slump, Babbar said Samsung’s market for foldable phones in India is growing steadily. “For us, it has shown very healthy growth this year. In terms of value, it would have been upwards of 30%. Adoption of foldables in tier II cities and beyond is much faster.”
A 21 July Counterpoint report said a total of three million foldable phones have been sold in India since 2019. Samsung is projected to account for 89% of all foldable phone sales in India this year, with Motorola a distant second at 8%.
The writer is in London to attend Galaxy Unpacked on Samsung’s invitation.
About the Authors
Jatin Grover
Jatin is based in New Delhi and writes on telecom and technology with a keen interest in policy and regulation. With over five years of reporting experience across Informist Media, Financial Express and now Mint, he has extensively covered the telecom, information technology, electronics and semiconductor sectors.
A commerce graduate, Jatin's work focuses on tracking industry developments, regulatory changes and policy decisions that shape India’s evolving digital ecosystem. Over the years, he has reported on key trends and shifts across these sectors, bringing clarity to complex policy and business issues.
Known for his strong news sense, Jatin focuses on breaking stories and delivering in-depth reporting that offers readers an understanding of complex topics, policy decisions and corporate developments. His work often examines the intersection of policy and business, highlighting how regulatory decisions impact industry strategy, pricing, and consumer outcomes.
He brings a strong domain understanding for Mint and his work is widely picked up by other media firms. With a focus on accuracy and depth, he aims to break down developments into clear, accessible insights for readers, while continuing to track emerging trends shaping the future of India’s telecom and technology sectors.
Shouvik Das
Shouvik has been tracking the rise and shifts of India’s technology ecosystem for over a decade, across print, broadcast and web-first platforms. He's been a tinkerer of machines and PCs since childhood, a habit he was thrilled to convert into his profession. This has led him to fascinating experiences of technologies around the world, which is what keeps him hooked to his job.
Shouvik likes to believe that he is one of the few technology journalists in India who can also code. He has also been writing about the rise of AI well before it became a household name, and has met some of the most fascinating people over the years through his work.
Shouvik writes about AI, Big Tech, data centres, electronics, semiconductors, cybersecurity, gaming, cryptocurrencies, and consumer technologies. He is most fond of the stories he has written during his time here at Mint, for which he also writes 'Transformer', a weekly technology newsletter, and hosts 'Techcetra', a weekly technology podcast.
Outside of work, Shouvik spends most of his time with Pixel, whom he believes is the world's best dog. He is also an avid reader, a toy collector, a gamer and a frequent traveller.
Source: Livemint — Companies
