Samsung’s next-generation foldable phones, the Galaxy Z Fold 7 and Z Flip 7, were launched at lower-than-expected prices in global markets. The company publicly explained why it adopted this pricing policy despite rising production costs.

Samsung’s low price strategy in the news

While the Z Flip 7 maintained its price from last year in some regions, the Z Fold 7 hit shelves with a mere 6 percent increase. Industry analysts had predicted a price increase of 10 to 20 percent due to tensions in the global trade environment and hardware cost increases.

Samsung’s mobile division president, TM Roh, stated after the Unpacked event in New York that this difference was a conscious decision. Roh confirmed that production costs had risen significantly this year, but said this had not been passed on to consumers.

According to the company, Samsung chose to absorb this cost increase to foster wider adoption of foldable phones and the widespread adoption of artificial intelligence features.

Declining sales of the Galaxy Z Flip series also influenced this decision. Industry sources indicate that sales of the Z Flip 6 have fallen by approximately 21 percent compared to the previous model. A price increase under these circumstances could have diminished the devices’ appeal, especially in the highly competitive foldable phone segment.

This pricing strategy by Samsung demonstrates its focus on long-term market dominance rather than short-term profitability. The company prioritizes maintaining its leadership in the foldable segment while also aiming to make AI-powered experiences more accessible.