Galaxy S23 pricing hinges on profit concerns and... iPhone 14 Pro?
It was recently reported that Samsung will probably not be able to reach its goal of selling 30 million units of the Galaxy S22 series before the arrival of the Galaxy S23 range. Another report said that the sales of flagship Samsung smartphones have been sluggish this year, with the mid-tier Galaxy A lineup accounting for most sales. This has impacted profitability and could compel Samsung to hike the price of the Galaxy S23 range.
A fresh report from a Korean outlet says that even though Samsung's mobile unit's revenue increased by 13.3 percent in the third quarter year-on-year, the operating profit declined by around 3.6 percent.
Fourth-quarter financial results are also expected to fall short of last year, primarily because any increase in sales of premium phones was offset by rising component costs, and low-end phones aren't that profitable.
The Galaxy S23 series will use pricier new components such as a custom version of the Qualcomm Snapdragon 8 Gen 2 chip and new cameras and the profit margin will shrink if prices are kept the same. If Samsung increases the price, the Galaxy S23 could lose competitiveness against the iPhone 14 Pro and Pro Max.
It appears that Samsung hasn't reached a decision yet on Galaxy S23 pricing, but considering Apple is expected to surpass Samsung as the largest smartphone seller this quarter, the Korean company will probably keep the same prices as the outgoing generation, i.e. $799 for the Galaxy S23, $999 for the Galaxy S23 Plus, and $1,199 for the Galaxy S23 Ultra.
That said, Apple is rumored to jack up price of the iPhone 15 Ultra, and this may give Samsung a justification to increase the price of the Galaxy S23 Ultra. The recent rumors about the possible cancellation of Apple and Google's budget phones and the lackluster performance of the iPhone 14 and 14 Plus suggest consumers are willing to pay up for top-notch hardware instead of settling for stripped-down variants.
Also, reports suggest that the Galaxy S22 FE is just around the corner, so Samsung may position it as a budget flagship for those who don't want to splurge on high end phones and target affluent buyers with the Galaxy S23.
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