Galaxy S22 Level Launch Likely
iPhone 15 and Plus Down... iPhone 15 Ultra Up
[Asia Economy Reporter Oh Su-yeon] As Samsung Electronics prepares to unveil the Galaxy S23 in February, it is highly likely that the pricing will be set the same as the previous model. However, Apple's iPhone 15 pricing strategy is expected to be a variable factor.
According to overseas IT media such as PhoneArena on the 3rd, the Galaxy S23 is expected to be released at a price level similar to the Galaxy S22.
Samsung Electronics sold the Galaxy S22 at $799, the Galaxy S22+ at $999, and the Galaxy S22 Ultra at $1,199. The domestic launch prices were 999,900 KRW for the Galaxy S22 (256GB), 1,199,000 KRW for the Galaxy S22+ (256GB), and 1,551,000 KRW for the Galaxy S22 Ultra (512GB).
Samsung Electronics lowered the launch price of the Galaxy S21 by up to 248,600 KRW in a dramatic cut and maintained the price through the S22 for two consecutive years. If the price is maintained this time as well, it will be frozen for three consecutive years.
Initially, the IT industry widely believed that Samsung Electronics would raise the price of the Galaxy S23. Last month, Samsung Electronics unexpectedly raised the prices of Galaxy Tab products by up to 220,000 KRW. The Galaxy Tab S8 Ultra 5G (512GB) increased from 1,908,500 KRW to 2,128,500 KRW, and the Galaxy Tab S8 5G (256GB) rose from 1,179,200 KRW to 1,328,800 KRW. It is unusual for Samsung Electronics to raise prices after product launch. Although the company did not specify the reasons for the increase, the IT industry believes that inflation-driven price hikes, raw material cost increases, and high exchange rates were decisive factors.
In its Q3 business report, Samsung Electronics stated that the average price of mobile APs rose by 80% compared to the same period last year. Additionally, the Galaxy S23 will apply Qualcomm Snapdragon 100%, increasing manufacturing costs significantly. Previous S series models alternated between Samsung’s in-house developed mobile AP Exynos and Snapdragon. The camera module price also rose by about 10%.
Although a price increase is urgently needed, Apple froze prices in the US when launching the iPhone 14, making it difficult for Samsung to adjust prices easily. Raising the new model’s price would weaken competitiveness against the iPhone, which holds the number one premium market share. Amid a global smartphone market contraction due to last year’s economic downturn, Galaxy S22 sales were sluggish. Industry consensus is that the Galaxy S22 is unlikely to exceed the target of 30 million units. With the Galaxy S23 needing to be a hit, a price increase is a significant burden.
However, a variable has emerged in pricing the Galaxy S23. There are forecasts that Apple will raise the launch price of the iPhone 15 next year.
According to multiple foreign media reports including Forbes citing IT tipsters, Apple decided to price the iPhone 15 series aggressively after the iPhone 14 and iPhone 14 Plus sales fell short of expectations. However, the new model iPhone 15 Ultra, an upgrade of the Pro Max, is reportedly priced starting at $1,299, $200 higher than the previous Pro Max.
PhoneArena explained, "Considering that Apple is expected to surpass Samsung as the largest smartphone seller this quarter, Samsung will likely maintain the same price as the previous generation. However, rumors of Apple raising the iPhone 15 Ultra price may give Samsung a justification to increase the Galaxy S23 Ultra price."
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