In an effort to challenge Apple’s (AAPL.O) supremacy in the premium market, Samsung Electronics (005930.KS) introduced its most recent foldable smartphones on Wednesday while maintaining costs at or around the same level for the last three years.
The leading smartphone manufacturer in the world created the market in 2019, anticipating that it would appeal to users seeking a larger screen to view content while maintaining a small total phone size.
According to research firm Counterpoint, foldable phones are still a limited product category that only accounts for 5% of the worldwide premium smartphone market, despite having expanded significantly from 0.3% in 2019.
According to market experts, Samsung, the market leader in the area with 63% of the market in the first quarter, wants to quicken the growth trajectory with aggressive pricing and a quicker deployment.
The company on Wednesday priced its new clamshell Galaxy Z Flip5 at $999.99, and the wide Galaxy Z Fold5 to start at $1,799.99 in the United States, the same as the launch prices of the last two years’ models.
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It made the folded Flip5 thinner than last year’s model by improving the hinge – and enlarged the cover screen to 3.4 inches (8.64 cm), adding more capacity for interactions and an improved ability to take a selfie with the top-line main camera.
Samsung’s 7.6-inch screen Fold5, lighter and thinner than last year’s model, offers a bigger vapour chamber for better heat management when gaming or multitasking and a 41% thinner stylus.
Both models use Qualcomm’s Snapdragon 8 Gen 2 chipsets.
The unveiling of the latest models comes weeks earlier than last year – seen by analysts as a bid to keep the limelight for longer before the next iPhone release.
“Competition with Apple’s iPhone 15 series is inevitable. Consumers of foldable products are expanding from early adopters to general users, in particular… in China and Western Europe,” said Jene Park, senior analyst at Counterpoint.
Because of advanced technology used for foldable displays and hinges, foldable phones are “significantly more expensive than general smartphones” to make, which can make price the biggest obstacle for a consumer, Park said.
In 2023, global foldable smartphone shipments are projected to reach 19 million units, up about 45% from 13.1 million in 2022, according to Counterpoint.
Apple had a 75% share of the premium smartphone market priced $600 or above in 2022, versus Samsung’s 16%.
Samsung’s new foldable phones will be available from Aug. 11 in select markets.
