Galaxy Z Fold/Flip 8 series priced higher, memory content unchanged (Goldman Sachs)

Street Signal | Galaxy Z Fold/Flip 8 series priced higher, memory content unchanged (Goldman Sachs)

Goldman Sachs comments on the latest Galaxy Z Fold/Flip 8 series released by Samsung Electronics (005930.KS). The new model is priced higher, but the memory specs remain unchanged.

This means that although Samsung has raised the average price of its products through price increases, it has not brought additional demand for capacity upgrades to memory suppliers. This is a neutral to negative signal for suppliers that rely on mobile phone shipments to drive memory demand.

One-sentence conclusion: The increase in pricing of Samsung's new foldable screen mobile phone is good for profitability, but the memory specifications remain unchanged, which weakens the pull effect on the upstream supply chain, especially the stimulation to the memory sector is limited.

Positive/negative: Positive for Samsung Electronics (005930.KS)'s own profitability. It is negative for the memory industry chain (such as Samsung's own memory business, SK Hynix, etc.), because it fails to bring about expected capacity upgrades, and this factor may not be fully expected by the market. Catalysts:

1) Actual sales data of Galaxy Z Fold/Flip 8 series;

2) Changes in memory specifications of Samsung’s subsequent flagship models (such as S series);

3) Recovery of overall smartphone market demand.