Samsung Welcomes Apple’s Most Expensive iPhone Yet

Samsung Electronics might surprisingly benefit from Apple’s highly anticipated entry into the foldable smartphone market. A premium-priced foldable iPhone could make Samsung’s own Galaxy foldable prices appear more competitive and justifiable to consumers.

As Samsung prepares for the unveiling of its Galaxy Z Fold 8 series in London this July, the mobile industry faces significant headwinds. Rising memory and processor costs are pushing up production expenses, with leaks suggesting higher Galaxy Z Fold prices. This comes as Apple, a long-absent contender, is expected to launch its first foldable iPhone in September, potentially as the most expensive iPhone to date.

Nabila Popal, a senior research director at IDC, projects that Samsung will increase its flagship foldable prices by approximately $100 this year. However, she anticipates these prices will remain “significantly lower” than Apple’s initial foldable, which IDC forecasts could debut with a “massive sticker price of $2,500.”

This scenario offers Samsung a rare strategic advantage over Apple: pricing flexibility. Yet, this pricing ‘cover’ is one of the few advantages. Samsung’s margins are also tightening due to the same component cost inflation. Furthermore, Apple’s entry adds another formidable competitor, joining Motorola in the US and Huawei in China, against whom Samsung is already struggling to maintain its lead in the burgeoning foldable phone market.

The global semiconductor and memory cost surge is a tangible challenge impacting the entire smartphone industry. Apple CEO Tim Cook recently acknowledged this, telling The Wall Street Journal that “unavoidable” price increases were necessary due to soaring memory and storage costs, likening the impact to a “hundred-year flood.”

Nabila Popal noted her lack of surprise regarding the price hikes, given that memory costs have nearly tripled this year, making absorption by any vendor impossible. However, she found Apple’s proactive timing surprising. She views Cook’s pre-launch announcement as a “deliberate and smart move” by Apple, strategically preparing consumers for higher prices.

In contrast, Samsung faces limitations in managing this message, with the financial impact already evident. Its mobile division’s operating profit saw a significant 35 percent decline year-over-year in the first quarter, despite robust Galaxy S26 sales, because component costs outpaced price adjustments.

Some Korean market analysts now predict Samsung’s mobile division could face operating losses in the second half of the year.

Linda Sui, founder of Smart Analytics Global and former head of mobile device markets at TechInsights, indicated that Samsung’s anticipated price increases for its foldables are a direct response to cost pressures and a strategic market maneuver. She predicts the high-end Galaxy Z Fold 8 Ultra will be priced around $1,999, with a broader book-style Galaxy Z Fold 8 model at approximately $1,799, creating a deliberate tiered lineup designed to precede Apple’s entry.

Sui emphasized that an iPhone foldable exceeding $2,000 would establish a “price umbrella” over the entire foldable category. This high ceiling would make competing devices, such as Samsung’s, appear more reasonably priced beneath it.

For Samsung, this strategic “price umbrella” is particularly valuable this year due to thinning margins. To succeed, the upcoming Galaxy Z Fold series must be perceived as a premium offering, not an overpriced one. An Apple foldable priced at $2,500 effectively positions the $1,999 Galaxy Z Fold 8 Ultra as a sensible and attractive choice for consumers seeking a top-tier foldable smartphone.

However, Samsung must commit to its pricing and product strategy first. Its new foldables are set for a July release, while Apple’s are not expected until September. This means Samsung is establishing its prices and introducing a wider, book-style model – coincidentally mirroring Apple’s rumored design – all while pricing against a yet-unseen rival product.

While Samsung enters July holding the title of the world’s leading foldable smartphone manufacturer, its market position is becoming increasingly precarious. In the United States, which represents the second-largest foldable market globally, Samsung has already ceded its lead, according to Nabila Popal. IDC data shows Motorola capturing 48 percent market share in 2025 compared to Samsung’s 43 percent, with the disparity widening significantly to 65 percent for Motorola versus 19 percent for Samsung in the first quarter of this year.

Counterpoint Research, while also noting a sharp decline from 65.6 percent a year earlier, still places Samsung narrowly ahead in 2025 with 50.9 percent, compared to Motorola’s 44.1 percent.

Popal asserts that Apple’s market entry will “intensify that pressure, particularly in the US” market for foldable devices.

In China, the largest foldable market accounting for approximately 60 percent of global shipments, Samsung has historically struggled to gain traction. Huawei dominates this crucial market. Therefore, Apple’s entry into China is perceived by Popal as a greater threat to Huawei’s stronghold than to Samsung, which has minimal market share to lose there.

Globally, Samsung currently retains its leadership position in foldables. Linda Sui from Smart Analytics Global forecasts that Samsung will maintain its lead through 2026, shipping over 7 million foldable units compared to Apple’s projected 5 million. However, the long-term outlook presents a challenge. Sui warns that “2027 could mark a major turning point,” with Apple “well-positioned to surpass Samsung” due to the immense strength of its ecosystem and a vast base of customers ready for upgrades.

Despite strategic pricing maneuvers, a fundamental question persists that pricing strategy alone cannot answer: Why should consumers choose a foldable smartphone? Price has consistently been the primary deterrent for foldable adoption, and with costs increasing further this year, the onus is on manufacturers to deliver compelling value. While hardware advancements are beneficial, Linda Sui suggests that “hardware improvements alone may not be sufficient.” The ultimate success hinges on whether foldables integrate meaningfully into users’ daily lives.

Sui believes foldables can succeed even without achieving mainstream status. She argues that these devices, much like a “luxury car lifting a mass-market badge,” can serve as “halo products.” Such products enhance brand image and protect profit margins without requiring high sales volumes.

Nabila Popal holds a more critical view. She points out that foldables remain “a niche segment of less than 2.5 percent of the total smartphone market.” Popal suggests that only two scenarios could significantly alter this trajectory:

“Either the price has to drop massively,” she states, “or a unique killer use case has to emerge that fundamentally changes how people interact with their smartphones.”

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