Following the Galaxy Note 7 fiasco, Samsung is under immense pressure to deliver a fantastic flagship come spring and hopefully make consumers forget about the troubles caused by its 2016 phablet. Interestingly enough, while the Seoul-based tech giant is looking to innovate as much as possible with the Galaxy S8, latest reports suggest that the next Galaxy flagship will cost as much as 20% more than the Galaxy S7 series. This estimate was made by the multinational finance company Goldman Sachs. In a recent forecast published by Goldman Sachs, the said firm predicted that the Galaxy S8 will cost between 15% and 20% more than Samsung's 2016 flagship lineup.
The finance company clarified that this price increase will primarily be caused by the rumored Viv integration. For the uninitiated, Samsung recently acquired an artificial intelligence startup Viv Labs, which prompted rumors that the Galaxy S8 will come with a built-in version of the firm's AI assistant. As explained by Goldman Sachs, Viv integration will result in increased raw material prices which the South Korean tech giant is expected to pass on to consumers. Given how the Galaxy S7 Edge starts at around $800, this report suggests that the Galaxy S8 could retail for approximately $950.
The practice of passing manufacturing costs to consumers is neither new nor unexpected in this case given how all of the industry rumors suggest that the Galaxy S8 will be a huge upgrade over the Galaxy S7 series. Of course, that doesn't mean all consumers will be thrilled if this predicted price increase ends up happening. However, if rumors of a phone with curved edges and without bezels powered by a 10nm system-on-chip end up being true, it's certainly not surprising that such a device would cost more to manufacture and that Samsung is interested in maintaining its profit margins. After all, the Seoul-based company is still in the business of making money, and latest estimates suggest that the Galaxy Note 7 fiasco cost Samsung approximately $3 billion. Of course, it remains to be seen whether the Galaxy S8 will even ship with Viv seeing how it's possible Google will prevent Samsung from integrating it.
In any case, we will hopefully know more by spring. Recent reports indicate that Samsung may actually skip the upcoming Mobile World Congress 2017 scheduled to start on February 27th, so it's possible that the Galaxy S8 won't be officially unveiled before late March or even early April.