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| Samsung Electronics' Galaxy S21 FE 5G is displayed at the Consumer Electronics Show in Las Vegas, Jan. 6. Courtesy of Samsung Electronics |
By Baek Byung-yeul
Samsung Electronics is scheduled to release its latest Galaxy S smartphone next month. However, due to the supply shortage of semiconductors, the company is expected to raise the price of the flagship smartphone.
According to overseas tech focused media, Sunday, the new Galaxy S22 will start at a minimum price of $899, around a $100 increase from the previous S21.
Samsung launched three variations of its S21 smartphones in January 2021. A model with the smallest 6.2-inch screen gained consumers' attention as it was rolled out for under 1 million won.
However, the industry view is that the company has to raise the price of the S22 phones due to the global supply chain disruptions caused by the COVID-19 pandemic.
Due to the shortage, prices of essential chips such as smartphone display driver integrated circuits, touch and display driver integration rose from around 30 percent to 40 percent in 2021, compared to the previous year. Power management chips and image sensor chips have increased from 10 percent to 15 percent as well.
Despite the chip price increase, there is another view that Samsung will try to stick to a similar price to the S21 as the company is chased by its Chinese competitors and Apple in terms of sales volume.
According to market tracker Counterpoint Research, Samsung is forecast to sell 290 million smartphones, thereby, ranking first in the global market with a 19 percent share. Apple is closely behind Samsung with 240 million phones and Xiaomi with 203 million.
"Competition has intensified in all directions and it may lose its shares in price-sensitive emerging markets such as in India to Chinese manufacturers," the research agency's analyst Kang Min-soo said.
The company is expected to introduce three versions of the S22 smartphones ― S22, S22 plus and S22 Ultra on Feb. 9. Among the three models, the Ultra model will be the most interesting one as it is expected to feature the S Pen stylus to replace the Galaxy Note.
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