According to rumors, Samsung will unveil the new Samsung Galaxy S23 series in February. The new flagship series will bring a unique design language for the three devices, new hardware, and improvements for the camera department. In these hard times of continuous inflation, Samsung fans are curious to see whether Samsung will keep the same price for the lineup or if there will be any price increase. Apparently, Samsung will keep the usual pricing for its new flagships, even though it needs to operate at a lower profit.
Samsung’s profit margin is being sacrificed with the rise of components’ price
As per a report by Korean media Maekyung, the revenue of Samsung’s MX Division rose from 28.42 trillion Won in Q2 2022 to 32.21 trillion Won in Q3 2022, which was a quarterly increase of 13.3%. However, the brand’s operating profit fell from 3.36 trillion won in Q2 2022 to 3.23 trillion won in Q3 of 2022, a drop of 3.6%. The improvement in revenue comes from the higher sales of Samsung’s premium phones. These include the recently-released Galaxy Z Fold4 and Galaxy Z Flip 4. However, the profit boost that the company would have enjoyed from the increase in sales was offset by the higher prices of smartphone components. The same effect comes with the Galaxy S23 series.
The rise in components’ price was high enough to push the brand’s operating profit to 3.6% less despite the increase in sales. Yes, Samsung managed to sell more premium phones, but that was not enough to bring a record profit. The low-profit margin will be kept with the Samsung Galaxy S23 series.
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The new flagships will have new, costlier, features
Despite the lower profit margin, Samsung will not increase the price of its upcoming flagships. The new Galaxy S23 series will have a lot of expensive components. For instance, we’ll have an exclusive overclocked version of the Snapdragon 8 Gen 2. Moreover, the Galaxy S23 Ultra will bring a new 200 MP main camera. These are some of the main new features, but we will also get a lot more. We can list, the latest Samsung AMOLED Display, new UFS 4.0 storage, and LPDDR5X RAM. Last but not least, there is the rumored satellite communication system. That feature certainly has its cost. Despite all this, Samsung will keep the phones at the same price as the Samsung Galaxy S22 series.
Since the price of components has increased, and there is new, costlier, hardware, Samsung will further reduce its operating profit. It seems to be a needed move, a price increase on the new Galaxy S23 series would be negative for the brand and would give room to competition. In these times of inflation, customers are not easily spending on premium devices. They would consider other devices like the iPhone 14 series before spending on something with a higher price tag.
How much the Galaxy S23 series will cost?
Considering the price tag of the Galaxy S22 series, we already know the price for the Galaxy S23 series. The Galaxy S23 may come at $799, the Galaxy S23+ at $999, and the Galaxy S23 Ultra at $1,199. The report mentions the “usual” price drop of Galaxy flagships. Apparently, the brand may reduce these price cuts to prevent further sacrifices in the profit margin.
