In response to a global memory shortage influenced by the booming AI industry, Samsung Electronics is set to increase prices on its forthcoming foldable smartphones. This move represents a notable shift from the company's traditional pricing approach, as reported by The Korea Herald. Leaked information from South Korean telecom channels suggests the Galaxy Z Flip8 will experience a 13% price hike compared to its predecessor.

The domestic cost for the 256-gigabyte Flip8 is projected to be around 1.68 million won (approximately USD 1,100), reflecting a significant rise. Meanwhile, the Galaxy Z Fold line will introduce a premium Fold8 Ultra and a new wider-format Fold8 model, neither having a direct predecessor, due to a structural split in the new generation. The Fold8 Ultra is expected to retail for 2.58 million won (USD 1,842).

Price increases are also manifesting outside South Korea. German sources indicate a EUR 280 (USD 320) rise for the 1-terabyte Fold8 Ultra, taking it to EUR 2,799 (USD 3201.13). These adjustments underline the immense pressure stemming from memory production shifts towards AI data centers, leading to higher costs for standard DRAM and NAND components that smartphones rely on. Although Samsung's semiconductor division is thriving, its mobile unit faces potential losses, as revealed by a report suggesting the smartphone division may have posted its first quarterly loss due to the component price surge. Samsung plans to unveil and release the new devices in late July and early August, though it hasn't confirmed these dates officially.

The broader mobile industry is not immune; Apple and Chinese manufacturers have also adjusted prices. A report from IDC indicates a 12.9% decline in global smartphone shipments, with rising component costs pricing out low-end devices, consequently affecting market dynamics.

(With inputs from agencies.)