There was an expectation that this year's foldable lineup from Samsung could see a significant price increase, not just due to the innovations they'd bring, but also due to rising trade tensions brought on by geopolitics.

Samsung has not raised prices in some of its most important markets. Only a single-digit increase has been made in some markets even as analysts were expecting a 10-20% hike across the board. Samsung MX boss TM Roh has explained the rationale behind it.

Prices for the Galaxy Z Flip 7 have been are the same as last year's model in South Korea and the United States. The Galaxy Z Fold 7 is more expensive, but only by about 6%, even in these markets but far below the increase predicted by industry watchers.

During a press briefing after Unpacked in New York City, TM Roh explained that production costs for the Galaxy Z Fold 7 and Z Flip 7 were higher this year due to the significant innovations they bring. “To expand foldable phones and democratize AI experiences, we decided to absorb those costs internally,” he added.

This simply means that Samsung is taking a hit on its margins for these devices. The company is willing to make less profit from these devices to ensure that it remains dominant in the foldable segment and brings advanced AI experiences to more people.

The recent sales decline for the Galaxy Z Flip series may have contributed to this decision. Industry sources claim that Galaxy Z Flip 6 sales were down 21% compared to the Galaxy Z Flip 5. A price hike for the lineup could have dented its competitiveness.