Samsung Unveils Thinner Foldable Phone Amid Competition
On Wednesday, Samsung Electronics introduced a new and slimmer foldable phone, positioning itself against the competitive threat from China in the premium market, a segment that Apple hasn’t fully tapped into yet.
The stakes for Samsung are significant. The South Korean tech giant lost its top smartphone position to Apple in 2023, now facing fierce competition from Chinese brands like Huawei and Honor.
In addition, Samsung’s flagship chip division is experiencing declining profits, which is partially attributed to delays in supplying AI chips for Nvidia.
Choi Wing Jun, Samsung’s Mobile President and Chief Operating Officer, expressed his ambition to establish Samsung as a leader in AI-driven smartphones. He mentioned in an interview with Reuters that he believes integrating AI into foldable phones could really resonate with users, making these devices a mainstream choice.
Choi highlighted that Samsung intends to leverage its internal AI technology, contrasting with Apple’s delays in rolling out key features. He also emphasized the importance of collaborating with external partners like Google to enhance this integration.
This launch event also showcased Samsung’s first smartwatch that features Gemini, Google’s voice assistant, which can provide owners with tailored recommendations, such as suitable running locations.
Focus on Premium Products
Back in April, Samsung outlined its strategy to prioritize premium products, especially as U.S. tariffs posed risks to demand and could push component costs higher.
The new Galaxy Z Fold 7 sees a 5% price increase over its predecessor, now priced at $1,999, while the more affordable Galaxy Z Flip 7 Clamshell Phone is listed at $899.
The Galaxy Z Fold 7 is powered by Qualcomm’s Snapdragon 8 Elite processor, whereas the Galaxy Z Flip 7 utilizes Samsung’s own Exynos chip.
Analysts believe that this fresh model will address some of the existing challenges with foldable phones, like weight and thickness, effectively enhancing Samsung’s premium image. The Galaxy Z Fold 7 is reportedly 10% lighter and 26% thinner than the previous model.
Nevertheless, high pricing and limited use cases may keep foldable phones in a specialized niche. According to research firm IDC, they currently account for only about 1.5% of the broader smartphone market.
Looking ahead, Canalys has projected that Samsung’s foldable shipments, which peaked in 2022, will likely remain stable or decline slightly in 2025.
Currently, foldable smartphones represent 4% of total mobile phone sales, but they make up 16% of sales in the $800+ price bracket, as reported by Canalys. However, competitive pressures from Honor and Huawei are encroaching on Samsung’s dominance in this market, particularly in China.
During the event in New York, Choi reaffirmed Samsung’s focus on the U.S., Europe, and South Korea for foldable phone sales.
Choi also mentioned that Samsung is diligently working on three different foldable phone models, allowing for versatile usage, but he did not provide specific details about launch timelines.
