If you had a solid 8 hours of sleep on December 3, 2024, you would have slept through the shock martial law that was imposed in South Korea between 22:27 – 04:30 KST. South Korea would have gone from democratic rule to military regime and back to democracy by the time you woke up.
The short-lived 6-hour martial law would likely have far-reaching consequences for the political players that orchestrated it, but as it turns out, it might also be the reason why the Galaxy S25 becomes more expensive.
List cheaper phones as another benefit of democracy
The South Korean won has already been under pressure for much of the year due to various economic and geopolitical factors. The uncertainty following the martial law regarding impeachment of President Yoon Seok-yeol has put further pressure on the currency, pushing the WON/USD exchange rate to over 1,430. The won has declined 8.5% against the US dollar over the past year.
In simple terms this means that more won fetch fewer dollars now and that raises the cost of doing business for companies that have to import components. Multiple reports have already suggested that Qualcomm has raised the price of the Snapdragon 8 Elite chipset that will be used for the entire Galaxy S25 series.
Samsung's cost to buy these chips will not just increase because Qualcomm is charging more for them but also because the company will now need to spend more won for the equivalent dollar value. With margins as slim as they are on smartphones, Samsung may have little choice but to raise the price of the Galaxy S25 series in South Korea and other markets.
The company did a balancing act in South Korea last year by keeping the same price for the Galaxy S24 and S24+ as their predecessors, since they were running the Exynos 2400 chipset made by Samsung within the country, while the price of the Galaxy S24 Ultra with the Snapdragon 8 Gen 3 for Galaxy was increased by nearly 100,000 won (~$70) compared to the Galaxy S23 Ultra.
Since the entire Galaxy S25 series is likely going to use the imported Snapdragon 8 Elite chipset, market watchers believe that the price of the latest flagships may be increased by 150,000 won (~$100) in South Korea. The company may also be forced to make similar increases in other markets, particularly where the currency has considerably depreciated against the dollar as well.
Don't hope for things to get better by 2026 for the next lineup. The Galaxy S26 will be even more expensive as it goes Snapdragon-only again and Qualcomm further jacks up the price of its flagship chipset. No wonder Samsung's itching to bring Exynos back into the fold.
