Samsung Electronics has taken a bold and somewhat surprising step in its largest smartphone market, the United States, by raising the prices of its flagship foldable phone, the Galaxy Z Fold7, just eight months after its launch. This price hike, which bucks the usual trend of smartphone prices declining over time, underscores the mounting pressures facing the global tech giant amid ongoing semiconductor shortages and soaring component costs.
According to Forbes and News Tomato, Samsung increased the price of the Galaxy Z Fold7’s 1TB model in the US from $2,419.99 to $2,499.99—a jump of $80, or roughly 120,000 Korean won. The 512GB version also saw an identical $80 increase, now retailing at $2,199.99. Notably, the entry-level 256GB model held steady at its original launch price of $1,999.99. This price adjustment wasn’t isolated to the US; similar hikes were seen in South Korea, where the 1TB Fold7 rose by 193,600 won and the 512GB versions of both the Fold7 and Flip7 increased by 94,600 won each. In India, Samsung has raised prices five times in 2026 alone, with some models like the Galaxy A17 5G seeing increases of up to 50,000 won.
At the same time, Samsung adopted a contrasting approach with its more accessible Galaxy Z Flip7 models. Both the 256GB and 512GB Flip7s were offered at a $200 discount in the US for about a week, continuing a pattern of periodic promotions that began in December 2025. These discounts, which have ranged from $100 to $200, are part of what industry watchers are calling a “two-track strategy”: raise prices on high-performance, flagship models while using discounts to keep the more mainstream, affordable models attractive to consumers.
This unusual pricing maneuver reflects the harsh realities of the current electronics market. As Samsung DX division head Roh Tae-moon put it at CES 2026, “No company is free from global memory shortages and price pressure. (Smartphone price increases are) an unavoidable choice.” The numbers back him up: in the first quarter of 2026, DRAM prices soared by as much as 95% compared to the previous quarter, while NAND flash memory jumped about 60%. The cost of application processors—essentially the brains of modern smartphones—also surged, with Samsung’s AP purchases in 2025 leaping 26.5% year-over-year to 13.8272 trillion won. Throw in currency fluctuations driven by global instability, and it’s clear why manufacturing costs have hit their limits.
According to SellCell, it’s typical for Samsung smartphones to lose half their value within a year of launch. But this time, the company has reversed course, opting for what some analysts describe as a “price reversal” to defend profitability rather than market share. Last year, for instance, Samsung cut the price of the Galaxy Z Fold6 by $350 to shore up its position in the foldable sector. Now, with costs spiraling, the company is betting that its core customers—especially those seeking top-tier performance—will accept higher prices.
The market response has been telling. Market research firm Omdia reports that in the first quarter of 2026, Samsung recaptured the global smartphone crown with a 22% market share, edging out Apple’s 20%. This was no small feat, considering the launch of the Galaxy S26 series was delayed by about a month and prices rose by 100,000 to 300,000 won compared to the previous generation. Yet, initial demand for the S26 series jumped 10% over its predecessor, the S25, and the S26 Ultra model alone accounted for a whopping 70% of the 1.35 million units sold during the one-week pre-order period—a record for the S series.
Meanwhile, rival brands that focus on affordability have struggled. Xiaomi’s global market share slipped from 14% to 11% year-over-year, while Oppo and Vivo also saw declines. In India, Samsung’s repeated price hikes—five in 2026 alone—have hit even its budget A-series models, with increases ranging from 500 to 3,500 rupees (about 8,000 to 56,000 won). The Galaxy A17 5G, for example, saw its price climb by around 50,000 won. Still, the company’s willingness to maintain discounts on certain models, like the Flip7, shows it’s not abandoning the value-conscious segment altogether.
Industry experts caution that these pricing moves may only be the beginning. The ongoing volatility in memory supply and component costs means that future models—such as the anticipated Galaxy Z Fold8 and even Apple’s rumored first foldable iPhone—are likely to debut at lofty price points. “The price acceptance of flagship product consumers is indeed a bit broader, but the cost burden from ‘chipflation’ continues,” one industry analyst told News Tomato. “We’ll have to see how much prices rise for the foldable products coming out in the second half of the year.”
Samsung’s strategy, then, is a delicate balancing act. By leaning into the premium market with higher prices for top-end devices, the company is betting that performance-focused customers will pay extra for the latest features and innovations. At the same time, it’s using targeted discounts on more accessible models to keep its broader customer base engaged. This approach has delivered results so far, as evidenced by Samsung’s regained market leadership and record pre-order numbers for its S26 Ultra.
But the risks are real. As component costs continue to climb and economic uncertainty looms, Samsung—and its competitors—face tough choices about how to price their next wave of devices. Consumers, for their part, may feel increasingly squeezed as even entry-level models become more expensive. The broader question is whether the market will continue to reward Samsung’s two-pronged approach or if persistent price hikes will eventually dampen demand.
For now, Samsung’s pricing gambit has given it a clear edge in the fiercely competitive smartphone arena. Whether this momentum can be sustained as new challenges emerge remains to be seen.