Foldable smartphones will go mainstream at Samsung: Mobile chief

NEW YORK – Samsung Electronics Co. has vowed to make foldable smartphones its mainstream products in the high-end segment, setting its sales target for this year at over 10 million units.

TM Roh, president and head of Samsung’s mobile experience, or MX, division, said on Wednesday foldables will account for more than half of its global smartphone shipments by 2025.

“On a global basis, we will turn the foldable smartphone segment, a niche market, into the mainstream,” he said at a press conference in New York after the company’s Galaxy Unpacked 2022 event.

“We’ll sell more than 10 million folding phones this year. Our foldables are among the high-end line of products and the most important game changers for us.”

During the Galaxy Unpacked event, the South Korean tech giant unveiled its fourth-generation foldable phones – new additions to its high-end line of Galaxy Z Fold and Z Flip phones.

Showcased at its "Unfold Your World" online event were two new folding phones, the Galaxy Z Fold4 and Z Flip4; three new smartwatches, the Galaxy Watch5, Watch5 Pro and Watch5 Golf Edition; and a set of new wireless earbuds, the Galaxy Buds2 Pro.

Samsung, the world’s largest smartphone maker by volume, said it is launching new models equipped with enhanced features, including upgraded cameras and longer-lasting batteries, to rival Apple’s high-end line of iPhones.

GROWING HEADWINDS

The Samsung mobile chief said it is “certain” that the global mobile phone market will post negative growth this year, weighed by higher inflation, volatile foreign exchange rates and geopolitical uncertainties.

“Nevertheless, demand for flagship premium smartphones is solid, particularly in advanced countries,” Roh said.

He said Samsung’s latest foldable phones, the Galaxy Z Fold4 and Z Flip4, will help it tide over the current difficulties and cement its market leadership.

The new smartphones, he said, improved significantly in both hardware and software aspects after working closely with Samsung’s global partners such as Google, Microsoft, Facebook parent Meta, Netflix and Spotify.

He also said the company has priced the two new phones at reasonable levels to have more consumers experience and enjoy foldable smartphones.

Samsung said it is offering the Galaxy Z Flip4 with a 256 GB capacity at 1.35 million won ($1,030) and the 512 GB phone at 1.47 million won – both up 7.9% from the previous models' price tags.

The Galaxy Z Fold4 with a 256 GB capacity will retail for 2 million won, while the 512 GB will be priced at 2.12 million won – the same as the Z Fold3.

CONSERVATIVE US CONSUMERS

Roh said foldable phones haven’t been well accepted in the US market because US consumers are conservative and it takes time for them to accept new technologies.

“Our Note series smartphones have been selling well in Korea, China, Southeast Asia and Europe but the US. However, the US market has become our top market for the fourth-generation Note smartphone. I expect our fourth-generation foldable phones will be the same, appealing to US consumers,” he said.

He said Samsung has secured enough initial inventory of the Galaxy Z Flip4 and Fold4 foldables for the US market.

Demand for wearable products such as the Galaxy Watch and Galaxy Buds is also rising alongside increased consumer health awareness, he said.

According to market research firm Omdia, the global foldable phone market is forecast to grow to over 30 million units by 2024.

Write to Hyun-Suk Kim at realist@hankyung.com
In-Soo Nam edited this article.