'Apple Pay' may launch in South Korea stepping on 'Samsung Pay's turf: Rumors

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• Apple's chip-cost squeeze complicates Samsung showdown Apple's iPhone Duo/ Courtesy of Apple SEOUL, November 03 (AJP) - Apple’s stronger-than-expected September-quarter earnings showed iPhone demand holding up despite a global smartphone slump, but soaring memory chip prices are squeezing its margins just as the U.S. technology giant mounts its first foldable challenge to Samsung Electronics. The South Korean rival has an unusual advantage in the contest. As both a smartphone maker and one of the world's largest memory chip producers, Samsung stands to benefit from the same chip price surge hurting Apple's profitability, even as its own handset business faces rising component costs. Apple reported revenue of $114.5 billion for its fiscal fourth quarter ended Sept. 26, up 12 percent from a year earlier and above analysts' estimate of $113.39 billion. Net income rose 12 percent to $30.7 billion, while diluted earnings per share climbed 14 percent to $2.10, beating Wall Street's forecast of $1.99. The results marked Apple's first earnings report under Chief Executive John Ternus, who succeeded Tim Cook in September. iPhone revenue jumped 17 percent to $57.6 billion, surpassing analysts' expectations of $56.54 billion. Services revenue reached an all-time high of $31.6 billion, up 10 percent, while Mac sales surged 24 percent to $10.8 billion. Graphics AI Assisted Apple shares fell as much as 4 percent in after-hours trading as executives warned that escalating memory costs would weigh on profitability. "We grew strong double digits in the U.S. and Greater China to achieve September quarter revenue records," Ternus said during Tuesday's earnings conference call. The resilience stood out against a shrinking global smartphone market. Worldwide smartphone shipments plunged 20 percent from a year earlier in the July–September quarter, according to market researcher Omdia. Samsung retained its top ranking with a 23 percent market share despite a 5 percent decline in shipments, while Apple followed closely with 22 percent, holding shipments flat from a year earlier. The figures underscore Apple's growing strength in the premium segment even as consumers elsewhere delay upgrades or turn to cheaper devices amid rising prices. The rivalry has intensified with Apple's entry into foldable smartphones, a category Samsung helped establish through successive generations of its Galaxy Z Fold lineup. Apple launched its first book-style foldable, the iPhone Duo, on Oct. 23. The device arrived after the September quarter ended and therefore contributed nothing to Apple's reported iPhone revenue. Nevertheless, executives described robust initial demand despite reports of cracked displays and other screen problems among early buyers. Apple has acknowledged display issues affecting a small number of devices and offered replacements. "We've been thrilled with the early response from reviewers and customers, and we are working hard to get iPhone Duo into customers' hands as quickly as we can," Ternus said. Chief Operating Officer Sabih Khan acknowledged that supplies remained tight. "iPhone Duo is constrained as of today. The ramp is going well," Khan said. "But at this time, it's really hard to predict when supply and demand will be in balance." Yet Apple's arrival has not necessarily come at Samsung's expense. Domestic sales of Samsung's Galaxy Z Fold8 rose about 20 percent in the week following the Duo's launch compared with the preceding week, according to South Korean telecommunications industry sources on Tuesday. Samsung Electronics' Galaxy Fold8/ AJP Han Jun-gu The increase suggests Apple's entry may be drawing fresh attention to foldables rather than simply taking customers away from Samsung. Still, the short-term improvement is not enough to establish a lasting gain in market share. Samsung has extended enrollment in its New Galaxy AI Subscription Club through Nov. 30 for eligible foldable models and stepped up year-end promotions to sustain demand. Beyond the foldable rivalry, Apple's earnings call exposed another competitive dynamic that could work in Samsung's favor: an unprecedented surge in memory chip prices. "What we're seeing with memory pricing right now is unprecedented," Ternus said. Apple's gross margin stood at 47.9 percent in the September quarter, including a benefit of approximately one percentage point from tariff refunds. The company expects that figure to fall to between 45 and 46 percent in the December quarter, primarily because of rising memory costs, along with some expenses related to its rollout of Siri AI. "We expect most of that decline to be driven by higher memory costs," Chief Financial Officer Kevan Parekh said. Ternus warned that the pressure was unlikely to ease soon. "Looking beyond the December quarter, we see the pricing for memory purchases continuing to increase," he said. Apple has already raised prices on several products, including Mac and iPad models in June and iPhones in September, partly to offset rising component costs. "These price increases provided some offset," Ternus said, adding that Apple also benefited from inventories purchased at lower prices and falling costs for certain non-memory components. But those inventories are dwindling, leaving Apple increasingly exposed to higher prices on new chip purchases. The memory shortage is affecting supply as well as profitability. "For the December quarter, we expect constraints on Mac and iPad primarily driven by memory, as demand has been higher than what we expected," Khan said. Apple said its manufacturing purchase obligations increased by $33 billion between the June and September quarters as it moved to secure supplies. Executives did not disclose how much of the increase involved memory chips or confirm whether Apple had signed new long-term memory supply agreements. For Samsung, the chip price surge presents a potential earnings windfall for its semiconductor division, even as it raises manufacturing costs for its own smartphones and consumer electronics. Samsung and fellow Korean memory producer SK hynix are positioned to benefit from tighter supplies and higher prices, although actual gains will depend on product mix, contract terms and customer relationships. Samsung's vertically integrated business gives it access to in-house memory production and potentially greater supply flexibility than rivals dependent entirely on external suppliers. That does not necessarily translate into cheaper chips for its smartphone division, however, since internal supply arrangements remain exposed to market pricing and competing demand. Apple also did not identify the suppliers responsible for its rising memory costs, making it difficult to quantify any direct benefit to Samsung. The competition is extending into artificial intelligence, where Samsung has made Galaxy AI a central selling point for its premium smartphones. Ternus highlighted Apple's redesigned Siri AI assistant, which expanded to Korean and several other languages in October. Apple expects revenue to grow between 7 and 10 percent in the December quarter, potentially making it the company's biggest quarter on record despite mounting component costs. For Samsung, the implications run both ways. Apple's resilient iPhone franchise, foldable debut and expanding AI capabilities pose a growing challenge to its premium smartphone business. Yet the same memory shortage squeezing Apple's margins could bolster Samsung's semiconductor earnings. The question is whether Samsung can turn its unusual position on both sides of the chip supply chain into a lasting competitive advantage without allowing higher component costs to undermine its own smartphone business.
• Durability Concerns Arise for Apple's iPhone Duo, Spotlight on Samsung's Galaxy Z Fold 8 Apple's first foldable phone, the iPhone Duo, is facing scrutiny over display damage reported shortly after its release, while the durability of Samsung's Galaxy Z Fold 8 is being highlighted.According to industry reports, U.S. tech outlet The Verge noted on October 23 that multiple buyers of the iPhone Duo have reported internal display damage. One Australian consumer claimed that just six hours after purchasing the device, the screen shattered after fewer than 20 folds. The damage occurred while he was demonstrating the phone to a friend, resulting in a cracking sound and damage around the hinge area. The product was exchanged at an Apple store.Issues were also revealed during durability tests conducted by popular tech YouTuber JerryRigEverything, who has 10 million subscribers. On October 24, he tested the iPhone Duo by applying sand and dust before repeatedly folding and unfolding it. Debris entered the hinge, preventing the device from closing completely. When he bent the open device in the opposite direction, green lines appeared on the internal screen, ultimately rendering it non-functional.In contrast, Samsung's Galaxy Z Fold 8 showed different results in a test conducted by the same YouTuber in August. Despite being forcefully bent in the opposite direction while held with both hands, the internal screen continued to function normally. Although the body warped slightly, the hinge and screen remained intact. JerryRigEverything's operator, Zack Nelson, praised the Fold 8's durability, likening it to 'Thanos-level durability' from Marvel movies.Independent consumer evaluations support these findings. In a rotational drop test conducted by Consumer Reports, the Galaxy Z Fold 8 showed no damage after 50 drops. Even in a more rigorous test involving 100 drops, both the screen and body operated normally.Since the launch of its first foldable phone in 2019, Samsung has consistently improved the hinge and display support structure. The Fold 8 incorporates 'Flex Titanium' technology using titanium alloy materials. This design enhances the support structure beneath the ultra-thin OLED panel, distributing pressure and impact on the screen. Samsung has stated that it conducted over 100 reliability tests on its latest foldable products, including drop and repeated folding tests.An industry insider remarked, 'For foldable phones, durability against repeated opening and external shocks is a crucial competitive edge, in addition to thinness and weight. Given that Samsung has improved its hinge and display technology over eight generations, the durability issues arising with Apple's first foldable phone have drawn attention to Samsung's accumulated technological expertise and product quality.'* This article has been translated by AI.
• Samsung vs Apple clash on foldable phone grounds CRACK! Skip › ♪ Music off Interactive · iPhone Duo 'Crackgate' A crack worth 3.29 million won Six hours after it was unfolded, in fewer than 20 folds, the screen split.Apple's answer: “a small number of devices.” Read the story ↓ ↻ Replay Unfold theiPhone Duo Unfold Sound on · about 10 seconds Apple· iPhone DuoVSSAMSUNG· Galaxy Z Fold8 Crackgate · Consumer Report iPhone Duo vs. Galaxy Z Fold8:1.01 million won pricier, 53g heavier, with more than double the repair cost At 256GB, 3.29 million won vs. 2,278,100 won — 710,000 won more than even the Fold8 Ultra (2,577,300 won) Apple is offering free replacements following reports of screen cracks after the device's launch, saying the issue affects “a small number of devices,” but has not disclosed its cause or extent. Oct. 30, 2026 · Prices and repair costs as of Oct. 29, based on industry data APPLE SAMSUNG iPhoneDuo GalaxyZ Fold8 “A small number of devices.” reports of cracks near the corners, no official comment Price in Korea3.29M won Price in Korea2.28M wonBetter Weight254g Weight201gBetter Inner screen repair (out of warranty)1.65M won Inner screen repair (out of warranty)774K wonBetter Dust and water resistanceIP68Better Dust and water resistanceIP48 VS 256GB models. Fold8 repair cost assumes the damaged part is returned. Apple's first foldable phone, the iPhone Duo, went on sale Oct. 23. / Courtesy of Apple SEOUL, October 30 (AJP) - Apple's first foldable phone, the iPhone Duo, has been engulfed in a “Crackgate” barely a week after launch. Reports of inner screens cracking or developing bright lines along the fold began pouring in on Oct. 23, the day the phone went on sale. One user in Australia claimed the screen near the hinge cracked about six hours after purchase, after fewer than 20 openings and closings. Apple said on Oct. 26 that it was “aware of an issue impacting the inner display on a small number of iPhone Duo units” and told affected users to contact AppleCare for a replacement. It disclosed neither the cause nor the number of units affected. In South Korea, even replacement units are in short supply. Consumers paid 3.29 million won ($2,455) in good faith. What did they get for that price, and what can they get back when something goes wrong? 01 · Duo vs. Fold8 by the numbers Pricier, heavier,and twice as costly to fix 256GB models. Read each bar to the end. iPhone Duo4 : Galaxy Z Fold84 3.29M wonPrice2.28M won 254gWeight201g 1.65M wonScreen repair(out of warranty)774K won 3.84M wonDevice +2-yr coverage2.52M won 120K wonDeductiblewith coverageAbout 232K won IP68Dust andwater resistanceIP48 5/10iFixitrepairability4/10 Rated less visibleCrease andscreen glare— On specs, it's 4-4. What separates them is price, repair costs and the response once problems surfaced. The Fold8 has also drawn reports that the four corners of its inner screen sink when pressed, but Samsung has not issued an official statement. *Based on the eight categories compared in this story. iPhone DuoGalaxy Z Fold8Fold8 Ultra Price in Korea Duo costs 1,011,900 won more 3.29 million won 2,577,300 won Ultra 2,278,100 won Weight Duo is 53g heavier 254g 201g Inner screen repair (out of warranty) Duo about 2.1x 1,649,000 won 774,000 won With part return · 968,000 won without Device + 2-year damage coverage 1,323,300 won gap 3,839,000 won AppleCare+ 549,000 won 2,515,700 won New Galaxy AI Subscription Club (2-year plan): 237,600 won Inner screen deductible with coverage Duo comes out ahead 120,000 won About 232,000 won 30% of the 774,000-won repair cost 02 · What Korean consumers pay Duo: 310,000 won more than in the USFold8: 470,000 won less Pre-tax prices compared at about 1,340 won per dollar APPLEiPhone Duo About 310,000 won (11.7%) more in Korea. Against the 3.29 million won retail price, which includes value-added tax, the gap is about 610,000 won. SAMSUNGGalaxy Z Fold8 About 470,000 won less in Korea. 03 · A week of cracks First cracks reported within hours of purchase;Apple responds three days after launch. An inner screen reportedly cracked along the hinge / Captured from social media Lines on the inner screen after bending it backward / Captured from JerryRigEverything's YouTube channel Oct. 23Launch day, and the first “cracked at the fold” reportsAn Australian user claims a crack near the hinge about six hours after purchase, after fewer than 20 folds. New orders in Korea are quoted a Jan. 22 ship date. Oct. 24JerryRigEverything durability testDust gets into the hinge and weakens the magnetic closure. After the phone is bent backward, a green line appears and touch stops responding. Oct. 26Apple: ‘aware of an issue on a small number of devices’Replacements offered through AppleCare. Cause and scale undisclosed. The same day, ITSub reports no problems after 100 folds, while a teardown by Curious Hagi finds a broken central hinge link. Oct. 27Teardown videos pile upJerryRigEverything: “The damage is concentrated where the screen meets internal hinge parts — a design problem.” Colorscale: “If the gears slip out of alignment, the thinnest support can break.” Oct. 28Apple announces free replacementsApple says iPhone Duo units with a confirmed internal display defect will be replaced free of charge, regardless of where they were bought or whether they are covered by AppleCare+. Oct. 29CNET robot test passes 125,000 foldsThe test continues until the phone fails. Apple has not disclosed an official fold rating. How to get a free replacement (Apple guidance, Oct. 28) 1Report the symptoms in Apple's Support app 2Inspection at an Apple Store or authorized service provider 3Replaced only if judged a “defect”If not → out-of-warranty repair at 1,649,000 won 4Replacement, but stock is short in Korea Where the phone was bought and AppleCare+ status do not matter. Apple says replacements are proceeding without disruption. UndisclosedCause of the defect UndisclosedNumber of units affected Late Jan.Expected delivery for new orders in Korea ↓Used prices falling · some preorders canceled 04 · Mixed durability results How many folds before it breaks?Results vary All are unofficial tests of individual devices. JerryRigEverythingOct. 23 · bent with dust insideLines on inner screen ITSubOct. 26 livestream · sand and drops includedNo crack after 100 folds Kuba KlawiterOct. 26 · right after an ice bathLine at fold 75,001 CNETOct. 29 · robot test, end of day 4About 125,000 folds *Bar lengths are scaled to 125,000 folds. JerryRigEverything ran a stress test (dust plus bending), not a fold count. 05 · What if it were a fridge? You bought a 3.5 million won fridge.Let's open the door. We may have grown numb because it's a smartphone. What if the same thing happened to a home appliance? Use the button below to open and close the door yourself. 3.5M won -18° Door opened 0 times Open and close the door Customer support chat with the manufacturer. Starts when you open the door What the rules say — South Korea's Consumer Dispute Settlement Criteria, a Fair Trade Commission notice, recommend an exchange or a full refund if a defect requiring major repair arises in normal use within 10 days of purchase, and an exchange or free repair within one month. Products bought in Korea carry a two-year quality warranty. Apple's Oct. 26 notice offered only a “replacement” — no cause, no scale, no refund. 06 · A familiar playbook “A small number of devices” is nothing new How Apple and Samsung responded when defect controversies broke. Cases in which Samsung also drew criticism are included. 2010 Antennagate“Just avoid holding it that way” 2014 Bendgate“Nine complaints in six days” 2017 BatterygateUndisclosed performance throttling 2026 Crackgate“A small number of devices” Downplay → public backlash → partial fix: the recurring pattern in Apple's defect controversies. Apple Samsung Electronics APPLEApple 2010iPhone 4 AntennagateWhen users complained that gripping a certain spot weakened reception, Steve Jobs replied, “Just avoid holding it in that way.” As criticism mounted, Apple handed out free bumper cases.Downplay → fix after the fact 2014iPhone 6 Plus ‘Bendgate’As videos of bending phones spread, Apple said only nine customers had contacted it about bending in the first six days of sales — wording that echoes this week's “small number of devices.”Downplayed with numbers 2017Batterygate and the Korean lawsuitApple was found to have slowed older iPhones without notice. It apologized and discounted battery replacements. It settled a US class action for up to $500 million and paid fines in France and Italy, but plaintiffs in a Korean damages suit joined by about 60,000 people lost at the first trial in 2024.Compensation abroad, loss in Korea 2017Refurbished phones and repair termsSwapping devices for refurbished units instead of making partial repairs was long a top complaint in Korea. In 2017, the Fair Trade Commission ordered Apple's authorized service providers to fix unfair terms, including a rule that repairs could not be canceled once requested.FTC corrective order 2021Shifting ad costs to carriersAfter a Fair Trade Commission probe into claims that Apple pushed advertising and repair costs onto Korean mobile carriers, a consent decree was finalized with a 100 billion won ($74.6 million) support package.Voluntary remedy instead of sanctions 2026iPhone Duo Crackgate“A small number of devices” and replacements through AppleCare. Cause and scale undisclosed. Replacement stock is short in Korea, and new orders ship in three months. Out-of-warranty inner screen repair costs 1,649,000 won.Cause and scale undisclosed SAMSUNGSamsung Electronics 2016Galaxy Note7 firesTwo weeks after launch, the company's president personally apologized and announced a full recall. Samsung ultimately discontinued the phone and, the following January, held a press conference disclosing a battery defect as the cause.Apology · full recall · cause disclosed 2019First Galaxy Fold screen defectsWhen review units developed screen defects before launch, Samsung delayed the release, reinforced the hinge and protective layer, and launched the phone five months later.Launch delayed · design fixed 2022Galaxy S22 GOS controversyOnly after criticism grew over forced throttling of game performance did Samsung apologize and release an update that let users turn it off. A class action was also filed in Korea.Criticized as slow to respond 2026Fold8 corner-sinking reportsSamsung has made no official statement on reports that the four corners of the inner screen sink toward the frame when pressed.No response ResponseApple · Duo (2026)Samsung · Galaxy Note7 (2016) Admitting the defect“A small number of devices” — scale undisclosedPresident apologized; full recall Disclosing the causeNonePress conference, including independent investigations Consumer optionsReplacement through AppleCareExchange or refund Stock in KoreaReplacement stock short; new orders ship in January— *A fire-prone product and a cracked screen cannot be compared on severity. This table compares only how transparent the responses were. 07 · What do you think? You paid 3.29 million won.How much would you put up with? Six questions · about one minute. Pick your answers to see your result and your rights as a consumer. See results My consumer type “It happens”“I'll fight to the end” Major defect within 10 days of purchase → exchange or refund recommended (Consumer Dispute Settlement Criteria) Two-year quality warranty on products bought in Korea; defects in normal use qualify for free repair or replacement If the company won't resolve it: 1372 Consumer Counseling Center, or a damage relief request with the Korea Consumer Agency Share my result Try again Notes · Sources Prices, weight, repair costs and coverage plans: public data from Apple Korea and Samsung Electronics, and industry figures as of Oct. 29, 2026. Exchange rate: about 1,340 won per dollar. Durability tests: public videos and livestreams by JerryRigEverything, ITSub, Kuba Klawiter, Joanna Stern, CNET, Curious Hagi and Colorscale. All are unofficial tests of a single device. Cause analysis: iFixit teardown report and YouTubers' teardown videos (speculative, not confirmed by Apple). Consumer rights: Consumer Dispute Settlement Criteria, a Fair Trade Commission notice. Photos and video: Apple's website, social media reports and screenshots from JerryRigEverything's YouTube channel. The crack and logo split in the intro are dramatizations. The thumbnail is a scene from Samsung Electronics' Galaxy Z Fold8 ad, which takes aim at Apple's first foldable smartphone, the iPhone Duo. / Captured from a Samsung Electronics ad Share “A crack worth 3.29 million won” with a friend ReportingPark Seung-ho VisualsKim Hyo-gon