A display model of Samsung Electronics’ double-folding smartphone, the Galaxy Z Tri-Fold, is on show at the Samsung Store in the Lotte Department Store’s main branch in Jung-gu, Seoul, on December 17, after the device sold out immediately upon being restocked. (Yonhap)
SEOUL, Dec. 23 (Korea Bizwire) — The rapid adoption of foldable smartphones is reshaping the global smartphone market, driving a structural shift toward higher prices and more premium specifications, industry analysts say.
Foldable devices, once the domain of early adopters, are gaining traction among mainstream consumers as demand grows for larger screens and multitasking capabilities. That shift, combined with rising component costs, is reinforcing an upward trend in smartphone prices that appears increasingly difficult to reverse.
The clearest signal came this month when Samsung Electronics sold out its newly launched tri-fold smartphone, the Galaxy Z Tri-Fold, despite a retail price of about 3.6 million won. Sales of the Galaxy Z Fold 7, released earlier this summer, have also outperformed its predecessor, underscoring the growing appeal of high-end foldable devices.
For more than a decade, the smartphone market was dominated by traditional bar-shaped designs. But consumer preferences have shifted toward larger displays, accelerating the move to foldables that offer tablet-like viewing experiences.
While both Samsung and Apple introduced ultra-slim models earlier this year, those devices have struggled to gain traction, while demand for premium foldables has continued to rise.
A notice announcing that supplies have been exhausted is displayed at the Samsung Store in the Lotte Department Store’s main branch in Jung-gu, Seoul, on December 17, the second sales day of Samsung Electronics’ double-folding smartphone, the Galaxy Z Tri-Fold.
The appeal of foldables, however, comes with structural cost pressures. Larger displays require more memory and higher-capacity batteries, while hinges and flexible panels add complexity to manufacturing. As a result, foldable phones tend to push hardware specifications higher across the board, lifting production costs.
Those pressures are being compounded by global supply-chain strains. Industry data show that DRAM prices had risen more than 75 percent year-on-year by the end of this year, with further increases expected in 2026. Memory components typically account for 10 to 15 percent of a smartphone’s production cost, making price increases difficult to absorb without raising retail prices.
Competition is set to intensify next year as Apple is widely expected to unveil its first foldable iPhone in the second half of 2025. The device is rumored to feature an internal display of about 7.8 inches and new technology to minimize screen creasing, with an estimated launch price in the mid-to-high 3 million won range.
Manufacturers now face a strategic balancing act between preserving profitability through premium pricing and expanding market share through higher volumes. For consumers, the trade-off is clear: broader choice and richer user experiences, but at the cost of steadily rising smartphone prices.
Galaxy Z TriFold
“The key question is how much the price barrier can realistically be lowered,” an industry executive said. “With few downward pressures on costs, the entry of global brands like Apple will be critical in shaping both market growth and the long-term pricing structure.”
Kevin Lee (kevinlee@koreabizwire.com)
