Samsung Raises Galaxy Z8 and Watch Prices Amid AI Chip Shortage

Samsung Electronics is raising prices across its upcoming foldable smartphone and wearable lineups due to a global memory chip shortage fueled by AI data center demands. This shortage has driven up the cost of DRAM and NAND flash, which analysts suggest now account for roughly 40 percent of the bill of materials for high-end smartphones. While these costs are eroding margins in the mobile division, they have produced record profits for Samsung's semiconductor business.

Leaked pricing indicates the Galaxy Z Flip 8 will cost approximately 1.68 million won (USD 1,100) in South Korea, a 13.3 percent increase. The Galaxy Z Fold 8 series will adopt a two-tier strategy: a standard Fold 8 with a new wider form factor starting at 2.28 million won (EUR 1,999), and a premium Fold 8 Ultra featuring a traditional narrow shape, a third camera lens, and a larger battery, starting at 2.58 million won (EUR 2,199). The new Fold 8 devices will feature the Snapdragon 8 Elite Gen 5 processor and a redesigned hinge intended to reduce the inner display crease, though some reports suggest this hinge may be less stable at certain angles.

Wearable prices are also increasing, with the Galaxy Watch 9 and Watch Ultra 2 expected to rise by roughly 10 percent in Europe. The Watch Ultra 2 is projected to cost EUR 749, a EUR 50 increase over its predecessor. Samsung is expected to unveil these devices at a Galaxy Unpacked event in London on July 22, with a commercial release in South Korea on August 7.