GoKawiilTL;DR The launch prices of the Galaxy Z Fold 8 Ultra and Fold 8 in the US and Europe are far higher than the launch prices in Korea.
Off to the side of the launch event, CEO TM Roh reportedly explained why the pricing is so much lower in the company’s home country.
The executive described the Korean market as the “foundation for strengthening the Galaxy brand’s global competitiveness.”
Yesterday, Samsung held its long-anticipated summer Galaxy Unpacked event, where it introduced the Galaxy Z Fold 8 series and Galaxy Z Flip 8. While a price hike was expected, given the current state of the industry, it didn’t hurt any less to learn that we would be paying $100 more for the Fold 8 Ultra this year. What has taken some by surprise is the launch prices in South Korea, which are far more affordable than those in the US and Europe. If you’re wondering why there’s such a price gap between these markets, CEO TM Roh has offered an explanation.
During the festivities, Roh reportedly took a moment to talk about the Fold’s pricing strategy off to the side. According to The Korean Times, Roh described Samsung’s home market as a foundation for strengthening the Galaxy’s global competitiveness. The executive added that the lower prices in Korea will remain the company’s direction and goal.
“Galaxy is a brand rooted in Korea, where it began and grew into a global leader,” the CEO explained. “The support, feedback, and encouragement from Korean consumers have been the foundation for strengthening the Galaxy brand’s global competitiveness. In recognition of the importance of the Korean market, we will continue striving to offer Galaxy devices at the most competitive prices in Korea and maintain that policy going forward.”
The Galaxy Z Fold 8 Ultra starts at a price of $2,099 in the US, while Europe pays €2,199 (~$2,500) for the same model. In Korea, the 256GB model sells for 2.58 million won ($1,743), which is about 20% lower than the US and ~44% lower than Europe. It appears the gap is even bigger for the Galaxy Z Fold 8, which costs $1,899 in the US and $2,280 in Europe. The wide fold is priced at $1,541 in Korea, which makes the device ~23% and ~48% more expensive in these regions, respectively.
In addition to explaining the difference in pricing, Roh says that the company has absorbed the mounting cost pressures. However, he also admitted that once costs exceed what the company can absorb, those costs will be handed down to the customer: We believe we can absorb much of the cost pressure through supply chain optimization and strategic collaboration with our partners, including joint development. However, once costs exceed what we can absorb, it becomes inevitable that part of the increase is reflected in launch prices. Even then, our goal is not to pass the full burden on to consumers. We will continue working with our partners to minimize the impact while making Galaxy’s innovations accessible to as many customers as possible.
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