The days when Apple products like the iPhone were criticized for being too expensive and underperforming seem to be over.
This has already started to appear when the Galaxy S24 Ultra was announc
ed with a starting price of $ 1,300, higher than the iPhone 16 Pro Max, which costs $ 1,200. However, things will go even further
when the Galaxy S25 is expected to launch early next year. Specifically, the Galaxy
S25 Ultra version could increase by $ 100, bringing the price difference up to $ 200 when compared to the iPhone 16 Pro Max.
The paradox when iPhone has a big price advantage over high-end competitors - 1
Not only the Galaxy S25 Ultra, many high-end Android smartphones in the near future also face the risk of price increases as Qualco
mm is planning to significantly increase the price of the Snapdragon 8 Elite Gen 2 chip. If Samsung continues to use Snapdragon chips fo
r its products, the prices of future Galaxy phone models may also be affected by this price increase.
This is entirely possible as Samsung is said to have decided to abandon the Exynos chip line for the entire Galaxy S25 product line
. The main reason is that Samsung Foundry has serious yield problems, with a rate of only 10%, making production unfeasible. There
is even information that Samsung may cooperate with TSMC to produce Exynos chips.
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The paradox when iPhone has a big price advantage over high-end competitors - 2
To avoid raising prices and scaring away customers, Samsung may need to take a page from Apple’s playbook, which has managed to keep phone prices steady by making
ts own chips. If Samsung can’t ditch Snapdragon chips before the Galaxy S26, it may have to negotiate lower prices for components from
other manufacturers. Otherwise, its only option is to raise the price of its Galaxy s
artphones, which could make them much more expensive than iPhones, which is not a wise strategy in today’s competitive environment.
