Galaxy S8 Retail Price Tag Could Be Higher Than Its Predecessor’s and Here’s Why
Samsung and all of its investors know the significance of the upcoming Galaxy S8 and what it means for the future of the company’s smartphone division. While the company would probably have wanted that the device would be priced at the same range as the Galaxy S7, it looks like the raw materials is going to force the company’s hand when the phone becomes available to purchase.
Analysts Claims Raw Materials Are the Sole Reason Why You Could Be Paying a Higher Price for the Galaxy S8
An analyst from Goldman Sachs has voiced his opinion on the potential price increase of the upcoming flagship due to the price increase of raw materials.
“We expect raw material prices to rise 15-20% compared to the Galaxy S7. If raw material prices rise, retail sales price hikes will be considered.”
To bring you up to speed, it isn’t just the Galaxy S8 that you could be paying a higher price tag for, but other products as well because they use the same components when it comes to RAM, storage, display and others. DRAM and NAND supply growth is expected to slow down in the future, driving those costs up. This will be due to increased smartphone, notebooks and PC sales, along with the fact that enterprises have started to switch to SSDs for better performance and higher reliability.
All of these factors combined are reason enough to explain why the Galaxy S8 could have a higher retail price when it hits market shelves. However, you should take the report with a pinch of salt as the supply of major smartphone and notebook components could go on par with demand as 2017 starts. Companies like Samsung and SK Hynix are investing heavily in manufacturing facilities in order to curb the disparity between demand and supply but with several players coming in, mitigating that demand might become difficult to prove.
In addition, the Galaxy S8 is said to be crafted in a completely different tone as opposed to its predecessors and that kind of engineering and approach could also lead to the smartphone’s increased price tag. What do you think will be the reasons for the increase in Galaxy S8’s price tag, if it does increase? Tell us your thoughts right away.
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