Value hikes for brand new units with few actual upgrades might scare customers away because the chip scarcity threatens to upend market givens.
With a brand new iPhone launch set for September and Galaxy’s foldable launching subsequent week, July is historically a busy month for smartphone buyers sizing up their subsequent improve. This yr, nonetheless, many are holding again, as an alternative leaning towards last-generation flagships just like the iPhone 17 and the Galaxy S26 collection.
Samsung and Apple will possible bump up costs for his or her upcoming fashions as they really feel the squeeze of hovering reminiscence chip costs. The anticipated hikes — as much as $300, in keeping with tipsters — make the earlier fashions appear like a fantastic cut price as the brand new telephones will possible include few upgrades.
Increased costs have been confirmed final month by Apple CEO Tim Cook dinner, who commented that hikes are “unavoidable.”
The Galaxy Z Fold 8 Extremely, anticipated to succeed the Z Fold 7, is drawing criticism as little greater than a spec-bumped Fold 7 with out sufficient of an improve to justify the Extremely branding, whereas the value bump is predicted to be as a lot as $280 for the 1TB mannequin. Stories recommend the precise product’s show crease will likely be almost similar to the Fold 7’s — a letdown on condition that Samsung had raised expectations with crease-free foldable show prototypes showcased earlier this yr. The brand new, wider variant is predicted to start out at $1,899.
For Apple, the usual iPhone 18 has been pushed to subsequent spring, whereas the Professional lineup is rumored to hold a $1,399 price ticket, a soar of as much as $300 from its predecessor regardless of modest upgrades. For the primary time, Apple is delaying the discharge of its base fashions, leaving customers with no selection however to purchase the pricier Professional variants if they need a brand new iPhone this fall.
In the meantime, gross sales for prior era fashions proceed to carry regular. This month, Samsung requested suppliers to boost Galaxy S26 manufacturing by 50 p.c from authentic targets, to 1.5 million models — a sign that demand is being pulled alongside forward of expectations that the Galaxy S27 will include a steeper price ticket on account of extended element shortages.
The Galaxy S26 collection is credited with serving to Samsung take again the highest international smartphone spot this yr, capturing 24 p.c market share within the second quarter — up 4 share factors from the identical interval a yr earlier — beating Apple’s 20 p.c, in keeping with market researcher Counterpoint Analysis. Within the first quarter, Apple took the highest spot with a 21 p.c share, adopted by Samsung’s 20 p.c.
Apple’s 20 p.c share was largely attributed to the iPhone 17 collection, which continued to take pleasure in robust reputation and maintained its place because the most-shipped international mannequin, the analysis agency stated.
“The worldwide reminiscence disaster has now overtaken each different issue as the one largest drag on the smartphone business,” stated Counterpoint Analysis analyst Shilpi Jain. “What began as a elements subject final yr is now a full-blown demand subject. The entry and mid-tier units, which account for a majority of the world’s smartphone volumes and are probably the most uncovered to Invoice of Supplies [ the total manufacturing cost of a device] economics, change into structurally unfeasible at earlier value factors.”
Nevertheless, indicators of softening demand are already displaying. World smartphone shipments for the quarter recorded an 11 p.c on-year slide, the steepest second quarter decline since 2013.
The query is whether or not value hikes and a delayed base mannequin launch will upend the standard sample the place robust demand for brand new telephones drives a profitability surge for smartphone distributors. If customers are disenchanted, that sample might break — and gross sales of predecessor fashions might find yourself outpacing the newer ones.
Early indicators of that development are already surfacing in Korea. LG Innotek, Apple’s foremost digicam module provider, stated in September of final yr that it plans to double manufacturing capability at its Vietnam manufacturing unit, citing the iPhone 17 collection’ continued reputation pushed largely by significant digicam upgrades.
Apple accounts for roughly 80 p.c of LG Innotek’s complete income, the very best dependency ratio of any Korean provider in Apple’s provide chain.
The momentum of the iPhone 17 is flowing on to LG Innotek’s backside line. Daishin Securities analyst Park Kang-ho initiatives the corporate’s second quarter working revenue to surge 1,599 p.c on yr, beating market consensus by 30.2 p.c, pushed by the digicam module division’s robust efficiency.
“Inside optical options, a rising share of premium Apple mannequin manufacturing is maximizing the combo impact,” Park famous. “Sturdy iPhone 17 gross sales are additionally anticipated to contribute to secure utilization charges.”
BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]