Samsung Galaxy S23 series is expected to make its debut in next month. The new flagship series is tipped introduce a distinct design language for the three devices, as well as new hardware and camera enhancements. Amid global uncertainty and inflation, Samsung enthusiasts are waiting to see if the price of the lineup will remain the same as its predecessor. According to a report, Samsung will not increase the price of its upcoming flagships, even if it means that the firm will operate at a lower profit.
South Korean publication Maekyung reports that Samsung MX Division’s revenue increased from KRW 28.42 trillion (roughly Rs. 1,85,300 crore) in Q2 2022 to KRW 32.21 trillion (roughly Rs. 2,09,900 crore) in in the third quarter. This represents a 13.3 percent increase quarter-on-quarter, but the company’s operating profit fell 3.6 percent in Q3 2022.
According to the report, the rise in revenue was due to an increase in sales of Samsung’s high-end devices, particularly foldable smartphones such as the Galaxy Z Fold 4 and the Galaxy Z Flip 4. However, the increased profits that the company could have made from additional sales of these devices were reportedly offset by rising smartphone component prices.
The increase in part prices was significant enough that the company’s operating profit fell by 3.6 percent despite an increase in sales, as per the report. If Samsung sells the Galaxy S23 series at the same price as the Galaxy S22 series, the company will earn even lower profits from its flagship line-up, further reducing its operating profit. However, if Samsung raises the prices, the Galaxy S23 series will become less competitive with Apple’s iPhone 14 lineup.
The Galaxy S23 series smartphones is expected to include even more expensive components, such as an overclocked Qualcomm Snapdragon 8 Gen 2 SoC and a 200-megapixel primary rear camera. The South Korean tech firm is reportedly intending to sell the Galaxy S23 for the same price as the Galaxy S22, even if it means lowering the company’s operating profit even further.
Samsung’s rival Apple is rumoured to be planning to price the iPhone 15 series smartphones higher than the iPhone 14 line-up. As a result, Samsung may have a reason to raise the prices of the Galaxy S23 series smartphones in order to compensate for the loss it experienced previously.
Months after its smartphones are released, Samsung typically reduces their prices. It’s possible that the Galaxy S23 will do the opposite. Even if Samsung doesn’t raise the price of the Galaxy S23, it is not expected to slash it, which will increase the company’s profits while keeping it competitive with the iPhone 15 series, as per the report.