According to a report from Maekyung, a South Korean publication, Samsung MX Division's revenue went up from KRW 28.42 trillion in Q2 2022 to KRW 32.21 trillion in Q3 2022. This is a 13.3% increase quarter-on-quarter, but the company's operating profit went down from KRW 3.36 trillion in Q2 2022 to KRW 3.24 trillion in Q3 2022, which is a 3.6% dip.
Galaxy Z phones improved Samsung's revenue
Reportedly, the improvement in the revenue was a direct result of an increase in the sales of Samsung's high-end devices, especially foldable smartphones such as the Galaxy Z Fold 4 and the Galaxy Z Flip 4. However, the increase in profits that the company could have gained from extra sales of these devices was offset by increasing prices of smartphone components. The rise in the price of parts was high enough that the company's operating profit dropped by 3.6% despite an increase in sales.
The Galaxy S23 series smartphones will feature even costlier components, including the overclocked version of the Qualcomm Snapdragon 8 Gen 2 SoC and a 200MP primary rear camera. If Samsung offers the Galaxy S23 series devices at the same prices as the Galaxy S22 series, the company will get even lower profits from its flagship lineup, decreasing its operating profit even further. But if Samsung increases the prices, the Galaxy S23 series will lose its competitiveness with Apple iPhone 14 lineup.
Galaxy S23 will be priced similarly to Galaxy S22 despite the dip in profits
The South Korean tech giant is reportedly planning to offer the Galaxy S23 for the same price as the Galaxy S22, even if it means a further drop in the company's operating profit. On the other hand, Apple is reportedly planning to price the iPhone 15 series smartphones at a premium compared to the iPhone 14 lineup. So, that might give Samsung a reason to hike the prices of the Galaxy S23 series smartphones and compensate for the loss it had faced earlier.
That means Samsung could price the Galaxy S23 at $799, Galaxy S23+ at $999, and Galaxy S23 Ultra at $1,199. It could increase its prices when the iPhone 15 series hits the market. Typically, Samsung slashes the prices of its phones as they age. With the Galaxy S23, it might do the exact opposite. Even if Samsung doesn't hike the prices of the Galaxy S23, expect it to at least not slash them, which will increase the company's profits and still maintain the competitiveness with the iPhone 15 series.