Samsung Mobile Chief Confirms Strategy to Absorb Costs on New Foldables for AI Democratization

Samsung’s mobile head, TM Roh, has confirmed a bold strategy to prioritize market expansion and “democratize AI experiences” by absorbing increased production costs for the latest Galaxy Z Fold 7 and Z Flip 7 smartphones. Despite significant innovations driving up manufacturing expenses, Samsung has opted for only a single-digit price increase, baffling some analysts who anticipated a 20 percent hike.

Roh explained, “Pricing is always a key consideration with new product launches. There were significant innovations in this year’s models, which increased production costs. To expand foldable phones and democratize AI experiences, we decided to absorb those costs internally.” This move signals Samsung’s commitment to wider adoption of its foldable technology and integrated AI features, even if it means sacrificing immediate profit margins per unit.

The decision comes amidst a challenging market, with internal sources citing a 21 percent sales decline for last year’s Galaxy Z Flip 6 compared to its predecessor. Additionally, fierce competition, particularly from Huawei’s dominance in the Chinese foldable market with its new tri-fold Mate XT, likely influenced Samsung’s aggressive pricing strategy. Looking ahead, Samsung is also rumored to be developing its own tri-fold device, the Galaxy G Fold, with limited production potentially starting in September for a Q4 unveiling, further underscoring its long-term vision for the foldable segment.

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