Will Galaxy S23 Prices Rise? A Look at the History of Galaxy S Series Prices

Galaxy S23 to be Unveiled Next Month
This Year, Standard Model Likely to Exceed 1 Million Won
Performance Improvements and Company Earnings Impact

[Asia Economy Reporter Kang Nahum] The flagship phone from Samsung Electronics, the new 'Galaxy S23,' is expected to see a significant increase in its retail price. Due to rising costs of smartphone raw materials, it is anticipated that the standard model will exceed 1,000,000 KRW for the first time in three years.

On the 15th, foreign media and related industries predicted that the domestic retail price of the Galaxy S23 series will rise by approximately 150,000 to 200,000 KRW compared to its predecessor. The IT specialized media SamMobile even suggested specific prices: 1,199,000 KRW for the standard model, 1,397,000 KRW for the Plus, and 1,599,400 KRW for the Ultra.

Samsung Electronics has traditionally tried to keep the price of the standard model under 1,000,000 KRW in the annually released S series. Looking at the price trends of the Galaxy S series over the past five years, the Galaxy S9 and S9 Plus released in 2018 were priced at 957,000 KRW and 1,050,000 KRW respectively, while the Galaxy S10E, S10, and S10 Plus launched in 2019 were priced at 898,800 KRW, 1,056,000 KRW, and 1,155,000 KRW respectively.

Subsequently, the Galaxy S20, S20 Plus, and S20 Ultra released in 2020 saw a moderate price increase to 1,250,000 KRW, 1,400,000 KRW, and 1,600,000 KRW respectively, but with the launch of the Galaxy S21 series in 2021, Samsung began lowering prices compared to the previous generation. The standard S21 was priced at 999,900 KRW, below 1,000,000 KRW.

The S21 Plus and S21 Ultra were priced at 1,199,000 KRW and 1,452,000 KRW respectively. The retail prices of the Galaxy S22, S22 Plus, and S22 Ultra were also the same as those of the S21 models.

Within the industry, the general consensus is that the standard model of the S23 will exceed the 1,000,000 KRW mark. The sharp rise in mobile AP prices is cited as the main reason for the inevitable price increase. According to Samsung Electronics’ Q3 business report, the average purchase price of mobile APs from Q1 to Q3 last year surged by 80% compared to the same period the previous year.

Additionally, the performance improvements of the Galaxy S23 are also considered a factor driving the price increase. The Galaxy S23 will feature Samsung Electronics’ 'ISOCELL HP3,' the world’s first 200-megapixel image sensor. The AP is expected to be Qualcomm’s 'Snapdragon 8 Gen 2' across all models.

Until now, Galaxy devices sold in the U.S. market have been equipped with Qualcomm Snapdragon APs, while those in Korea and Europe have used Samsung’s own Exynos APs. However, this year, it is expected that all models will be equipped with the higher-performance Qualcomm AP.

Considering the company’s recent performance, a certain level of price increase seems unavoidable. According to Samsung Electronics’ preliminary Q4 2022 results, sales dropped by 8.58% year-on-year, and operating profit also decreased by 69%. Although the performance of the MX division, which handles smartphones, has not yet been disclosed, the securities industry expects that profits have declined due to decreased smartphone sales and revenue amid weak demand.

However, there are also views that it will be difficult to implement a large-scale price increase amid the ongoing global economic downturn and sluggish demand for IT devices. In particular, the fact that competitor Apple froze the U.S. price for the iPhone 14 at its launch last year adds pressure.

If the new model’s price is raised, Samsung risks losing competitiveness against the iPhone, which holds the top share in the premium market. Amid a global contraction of the smartphone market due to last year’s economic downturn, Galaxy S22 sales were also sluggish. The industry consensus is that the Galaxy S22 sales volume is unlikely to exceed the target of 30 million units. With the Galaxy S23 needing to be a hit, a significant price increase poses a considerable burden.