Prices for premium smartphones from Samsung Electronics (005930.KS) and Apple (AAPL) have soared past 3 million won ($2,150) amid chipflation, prompting SK Telecom (017670.KS) to court budget-conscious buyers with the Galaxy Quantum7, a carrier-exclusive handset priced in the 700,000-won range.
Foldable Phones Top 3 Million Won but Stay Popular
Premium smartphone prices have climbed sharply, industry sources said on the 26th. The Galaxy Z Fold8, Fold8 Ultra and Flip8, which Samsung officially launched in Korea on the 7th, carry price increases of 8% to 13% over their predecessors, driven by higher component costs.
The Fold8 with 12GB of memory and 256GB of storage costs 2.28 million won, while the Fold8 Ultra costs 2.58 million won. Models with 16GB of memory and 1TB of storage reach 3.15 million won and 3.45 million won, respectively. The Flip8 is priced at 1.68 million won for the 256GB model and 1.94 million won for the 512GB version.
Despite the steep price increases, the phones sold well at launch. The Fold8 series sold about 140 units per minute during the preorder period, setting a record for the most preorders of any Galaxy smartphone. That surpassed the 1.04 million units for last year's Fold7 and Flip7, as well as the previous high of 1.38 million units set by the 2019 Galaxy Note10.
Apple's first foldable iPhone is also expected to be a high-end product. Tech outlet Tom's Guide projected on the 24th that its price could reach $2,000 to $2,500 (about 2.77 million to 3.46 million won). PhoneArena estimated the base model at $1,999, the 512GB version at $2,199 and the 1TB version at $2,399.
Galaxy Quantum7 Arrives at 717,000 Won Amid Price Competition
As premium phone prices surge, a more affordable option has emerged.
SK Telecom launched the carrier-exclusive Galaxy Quantum7 on the 25th at a retail price of 717,200 won. That is more than four times cheaper than top-tier foldables priced above 3 million won.
At 6.9 millimeters thick and weighing 179 grams, the Quantum7 is the thinnest and lightest in the Quantum series. It supports 45W fast charging and comes with enhanced artificial intelligence (AI) features.
A new Voice Transcript Assist feature converts audio files into text and supports translation. Other tools include Google's Circle to Search, which lets users search by drawing a circle on the screen; Best Face, which picks the best expression from motion photos; and an AI Eraser that removes unwanted elements from images.
The camera is the first in the Galaxy A series to apply low-light noise reduction, improving the sharpness of photos and video in dark settings. Its water and dust resistance carries the same IP68 rating as flagship smartphones.
The phone comes in three colors: Awesome Grey, Awesome Ice Blue and Awesome Lilac. The Awesome Lilac version is sold only through SK Telecom's official online store, T Direct Shop. The phone is also available at T World stores nationwide.
Budget Market Shaken; Samsung Seen Overtaking Apple for Top Spot
The wave of high-priced smartphones dovetails with a polarization in this year's global smartphone market. Premium products are expected to maintain relatively solid demand, while the price-sensitive budget market is likely to take a bigger hit from rising component costs.
According to a forecast released by market research firm Counterpoint Research on the 24th, global smartphone shipments are expected to fall 14.3% this year from last year. The decline is attributed to rising prices for key components such as mobile memory and chipsets, a reduced supply of entry-level products and weaker consumer purchasing power.
Even in such a market, Samsung Electronics is forecast to see shipments rise 0.8% this year from a year earlier. Apple, by contrast, is expected to see a 2.1% decline, increasing the likelihood that Samsung will reclaim the top spot in annual global shipments that it ceded to Apple last year.
Analysts said Samsung's broad product lineup, spanning premium foldables to budget models, along with its in-house component sourcing and its carrier and distribution networks, has served as a strength amid supply-chain uncertainty.
Apple is expected to unveil its first foldable iPhone in the third quarter of this year, but its initial shipments are projected to reach only a few million units, not enough to upend the overall market. Counterpoint Research forecast that global smartphone shipments will fall another 1.4% next year before entering a genuine recovery, growing about 4.8% starting in 2028 as component supply and prices stabilize.
