Smartphone Prices to Hit 3 Million Won: Samsung and Apple Face Dilemma Amid Soaring Costs

The unprecedented surge in memory semiconductor prices is turning concerns over "phoneflation"—rising smartphone prices—into reality.

With both Samsung Electronics and Apple considering price hikes, there are projections that the price of top-tier foldable phones could exceed 3 million won per unit.

According to the IT industry, forecasts suggest that the Galaxy Z Flip8, set to be released this coming August, will be priced at approximately $1,200, while the top-of-the-line Galaxy Z Fold8 Ultra could soar to as high as $2,100.

Converted to Korean currency, this amounts to 3.2 million won, significantly higher than the domestic launch prices of previous models.

Apple, which has long boasted a powerful supply chain, has also been hit hard by the skyrocketing cost of components.

Market research firms predict that the starting price of the iPhone 18 Pro, to be unveiled this coming September, will reach $1,299—about 2 million won in Korean currency—which is $200 higher than its predecessor.

Apple CEO Tim Cook has also acknowledged the situation, stating, "We tried to minimize the price increases, but it has reached an unsustainable level."

Samsung Electronics had been concerned that if it were to raise prices alone in the foldable phone market, where it has effectively been the sole leader, consumers might defect to the iPhone.

However, with Apple also signaling a series of price hikes, the benchmark price for premium smartphones is expected to rise across the board.

The cause is a supply shortage of memory chips driven by increased investment in AI.

Research indicates that the price of mobile DRAM in the second quarter of this year is expected to rise by up to 98% compared to the previous quarter, marking a sharp surge where costs have nearly doubled in just one quarter.

Given the circumstances, manufacturers are facing deep concerns.

This is because raising product prices reduces demand, while absorbing the costs directly hurts profitability.

Projections have already emerged that global smartphone shipments this year will fall by more than 13% from last year to 1.008 billion units, the lowest level since 2013.

Mid-to-low-end brands, which struggle to pass on rising costs to consumers, are also expected to take a significant hit.

Reported by Lee Hyeon-yeong | Video by Jang Yu-jin | Graphics by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.