Samsung Electronics (005930. KS), the world’s largest smartphone maker, revealed its latest foldable smartphones on Wednesday, signaling an ambitious move to rival Apple’s (AAPL.O) stronghold in the premium market. The tech giant aims to remain a pioneer in the foldable phone segment, keeping prices stable for the third consecutive year.
In 2019, Samsung introduced foldable smartphones, foreseeing a demand for larger screens that could still maintain compactness when folded. The company’s innovation was well-received, capturing 5% of the global premium smartphone market. Since then, the sector has experienced remarkable growth, expanding from a mere 0.3% share in 2019, according to data from research firm Counterpoint.
With 63% of the market share in the first quarter, Samsung continues to lead in the foldable phone segment. Industry analysts believe that Samsung plans to accelerate this growth trajectory through an aggressive pricing strategy and a faster rollout of its latest offerings.
During the unveiling event, Samsung priced its new clamshell model, the Galaxy Z Flip5, at $999.99, and the wide Galaxy Z Fold5 will start at $1,799.99 in the United States. These prices mirror the launch prices of the last two years’ models, demonstrating Samsung’s commitment to keeping their foldable phones accessible to consumers.
The Galaxy Z Flip5 boasts improvements over last year’s model, with a thinner design due to enhancements in the hinge and an enlarged cover screen measuring 3.4 inches (8.64 cm). These improvements increase the phone’s overall capacity for interactions and enhance the capability of taking selfies with the top-line main camera.
Meanwhile, the Galaxy Z Fold5 presents a 7.6-inch screen, which is both lighter and thinner than its predecessor. It features a larger vapor chamber to enhance heat management during gaming or multitasking and a 41% more delicate stylus. Both models are powered by Qualcomm’s Snapdragon 8 Gen 2 chipsets, ensuring smooth performance and efficiency.
The launch of Samsung’s latest foldable smartphones is notably earlier than last year’s release, a strategic move aimed at extending the limelight before the next iPhone series hits the market. Analysts view this decision as a competitive measure to secure a larger share of consumer attention.
Jene Park, a senior analyst at Counterpoint, commented on the growing popularity of foldable products, noting that consumers have expanded from early adopters to general users, particularly in China and Western Europe. However, Park also pointed out that foldable phones are generally more expensive to manufacture than traditional smartphones, posing a potential obstacle for some consumers.
Despite the pricing challenges, Counterpoint projects global foldable smartphone shipments to reach 19 million units in 2023, a remarkable 45% increase from the 13.1 million units shipped in 2022.
Apple currently holds a 75% share of the premium smartphone market for devices priced at $600 or above, while Samsung’s share is at 16%. By releasing their latest foldable phones on August 11 in select markets, Samsung aims to make significant inroads and challenge Apple’s stronghold in the premium segment. As the competition between the two tech giants intensifies, consumers can anticipate a range of cutting-edge features and enhanced user experiences in the latest foldable smartphones from Samsung.
