Galaxy Fold Price Surpasses $2,000 for First Time Amid Memory Cost Surge

Samsung Electronics is set to break the psychological price barrier of $2,000 for its premium smartphones with the upcoming launch of the Galaxy Z Fold 8 series. The Galaxy Z Fold 8 Ultra, slated for release on July 22, will reportedly debut at $2,099 for the 256GB model, marking the first time a standard foldable model from Samsung exceeds this price point.

The Galaxy Z Fold 8 will be available for $1,899, featuring a new wider, passport-style design. The Fold 8 Ultra will support an S Pen and boast a 5,000mAh battery. The clamshell-style Galaxy Z Flip 8 will also be unveiled at the same event.

This price hike is largely driven by the escalating cost of memory chips, a phenomenon dubbed 'chipflation,' fueled by the widespread adoption of artificial intelligence. Market research firm TrendForce predicts a further 13-18% increase in DRAM prices and a 10-15% rise in NAND flash prices for the third quarter. Consequently, the proportion of memory costs in an $800 smartphone has surged from 14% last year to 40% recently, with the combined cost of DRAM and NAND flash for a single model quadrupling from $63 to $291.

Samsung is not alone in passing these increased costs to consumers. Apple recently raised prices for its MacBooks and iPads by $100 to $300, and Chinese manufacturers like Xiaomi, Vivo, and Oppo have also adjusted their new product pricing upwards. The Galaxy Z Fold 7, released last year, came close to the $2,000 mark at $1,999.99, but the Fold 8 Ultra's $100 increase signifies a notable jump, making the base model $200 more expensive than the Fold 5 was two years ago.