Samsung may welcome Apple's costly foldable iPhone

Samsung Electronics might find an unexpected ally in Apple's entry into the foldable phone market, particularly if the Cupertino giant prices its debut device at a premium. Apple is anticipated to launch its first foldable iPhone in September, with industry watchers predicting a hefty price tag potentially reaching $2,500. This move could inadvertently benefit Samsung, whose own foldable devices, like the upcoming Galaxy Z Fold 8 series, are expected to see price increases of around $100, bringing them closer to $1,999 for the Ultra model.

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price increases were “unavoidable”

The rising cost of components, especially memory and processors, is squeezing profit margins for both tech giants. Apple CEO Tim Cook recently described the surge in memory and storage costs as a "hundred-year flood," making price hikes "unavoidable." While Apple can prepare the market for higher prices, Samsung faces immediate pressure. Its mobile division's operating profit already fell 35% in the first quarter, partly due to component costs outpacing price increases.

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a “massive sticker price of $2,500”

Analysts are projecting further challenges for Samsung's mobile business, with some suggesting it could even slip into the red in the latter half of the year. In this environment, Apple's high-priced foldable could create a "price umbrella" over the category. This would make Samsung's foldables, even with their anticipated price hikes, appear more competitively priced and sensible to consumers. The timing is also crucial, with Samsung's new foldables set to launch in July, ahead of Apple's September release, allowing Samsung to set the market's expectations first.

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a “price umbrella” over the category