In response to rumors, Samsung will unveil the brand new Samsung Galaxy S23 sequence in February. The brand new flagship sequence will carry a singular design language for the three units, new {hardware}, and enhancements for the digital camera division. In these onerous occasions of steady inflation, Samsung followers are curious to see whether or not Samsung will maintain the identical value for the lineup or if there will probably be any value improve. Apparently, Samsung will maintain the same old pricing for its new flagships, although it must function at a decrease revenue.

Samsung’s revenue margin is being sacrificed with the rise of parts’ value

As per a report by Korean media Maekyung, the income of Samsung’s MX Division rose from 28.42 trillion Gained in Q2 2022 to 32.21 trillion Gained in Q3 2022, which was a quarterly improve of 13.3%. Nevertheless, the model’s working revenue fell from 3.36 trillion received in Q2 2022 to three.23 trillion received in Q3 of 2022, a drop of three.6%. The development in income comes from the upper gross sales of Samsung’s premium telephones. These embody the recently-released Galaxy Z Fold4 and Galaxy Z Flip 4. Nevertheless, the revenue increase that the corporate would have loved from the rise in gross sales was offset by the upper costs of smartphone parts. The identical impact comes with the Galaxy S23 sequence.

The rise in parts’ value was excessive sufficient to push the model’s working revenue to three.6% much less regardless of the rise in gross sales. Sure, Samsung managed to promote extra premium telephones, however that was not sufficient to carry a file revenue. The low-profit margin will probably be stored with the Samsung Galaxy S23 sequence.

The brand new flagships could have new, costlier, options

Regardless of the decrease revenue margin, Samsung won’t improve the value of its upcoming flagships. The brand new Galaxy S23 sequence could have a whole lot of costly parts. As an example, we’ll have an unique overclocked model of the Snapdragon eight Gen 2. Furthermore, the Galaxy S23 Extremely will carry a brand new 200 MP fundamental digital camera. These are a number of the fundamental new options, however we may also get much more. We are able to record, the most recent Samsung AMOLED Show, new UFS 4.zero storage, and LPDDR5X RAM. Final however not least, there’s the rumored satellite tv for pc communication system. That characteristic definitely has its price. Regardless of all this, Samsung will maintain the telephones on the identical value because the Samsung Galaxy S22 sequence.

Because the value of parts has elevated, and there’s new, costlier, {hardware}, Samsung will additional scale back its working revenue. It appears to be a wanted transfer, a value improve on the brand new Galaxy S23 sequence can be adverse for the model and would give room to competitors. In these occasions of inflation, clients aren’t simply spending on premium units. They might take into account different units just like the iPhone 14 sequence earlier than spending on one thing with a better price ticket.

How a lot the Galaxy S23 sequence will price?

Contemplating the value tag of the Galaxy S22 sequence, we already know the value for the Galaxy S23 sequence. The Galaxy S23 might come at $799, the Galaxy S23+ at $999, and the Galaxy S23 Extremely at $1,199. The report mentions the “normal” value drop of Galaxy flagships. Apparently, the model might scale back these value cuts to forestall additional sacrifices within the revenue margin.