Reports suggest that the Samsung Galaxy S25 series is likely to experience a price increase next year, particularly in Korea. This potential hike is attributed to various factors such as current political turmoil and the rising cost of components.

Price Increases and Their Causes

The tipster Jukanlosreve spotted reports from Yonhap News and The JoongAng. The Yonhap report indicates a slight increase mainly due to the exchange rate of South Korea's won, which affects the prices of imported parts for Samsung's flagship handsets. For instance, the Galaxy 24 Ultra initially started at 1,698,400 won ($1,180 USD), but the exchange rate has now risen to 1,450 won to $1 USD. However, YonHap did not specify the exact amount of the increase.On the other hand, the Exynos 2400 version of the S24 and S24 Plus had the same price as the S23 versions, while the Snapdragon 8-powered S24 Ultra saw a $70 ($100 increase in the US) price increase. This shows the variation in price hikes among different models.During a July conference call, Daniel Araujo, head of planning at Samsung Electronic, expressed concerns about decreased profitability due to the continuous increase in the unit price of major components. But the company is still pursuing an "upselling" strategy to grow sales centered on premium products.The JoongAng reports also mention Taiwan's TSMC and its comment on the instability in Korea, suggesting it might harm Samsung. The founder, Dr. Morris Chang, stated that the recent political turmoil will not be beneficial for the company's management.

Domestic and Overseas Price Differences

An insider from JoongAng revealed that the domestic price of the Galaxy S25 will raise by 150,000 won ($105 USD). Since the overseas average selling price (ASP) of Samsung smartphones is lower than the domestic market, even with a rising exchange rate, the effect on overseas sales profitability will be limited. This means Samsung may have to adjust the domestic price.In general, inflation has led to price increases across the board, and the cost of the Qualcomm Snapdragon 8 Elite chipset is expected to be 25 to 30% more expensive than the Snapdragon 8 Gen 3 currently in the best Android phones. Samsung has struggled with its own Exynos chipset, which may have offset some costs, but the new Qualcomm chip is likely to power the entire S25 lineup.It's not a certainty that Samsung will raise prices outside of Korea as the Galaxy sells for lower prices in other countries. But as it stands, it seems that picking up next year's flagship Android phone will cost more than in previous years.