Why Samsung leads the foldable phone pack

08 August, 2021
Why Samsung leads the foldable phone pack
Foldable smartphone shipments will surge almost three times on an annual basis to reach nearly 9 million units this year, with Samsung holding 88 per cent market share of the high-end devices, according to Counterpoint Research.

The South Korean technology giant is expected to launch two new foldable devices at its Galaxy Unpacked event on August 11.

The company’s upcoming foldable models – rumoured to be named the Galaxy Z Fold3 and the Galaxy Z Flip3 – are expected to bring major improvements over their predecessors. They will also include the stylus S pen, a signature feature of the company’s premium Note series phones, to attract professional users, according to industry experts.

“With a significant price drop, improved design and appearance, Samsung is likely to target younger customers with the new foldable Flip smartphone … the new models will get S Pen support, too, which can help absorb existing Note users,” Jene Park, Counterpoint’s senior analyst who leads foldables research, said.

Here's a look at Samsung’s existing foldable models, existing competition and the future outlook of the industry.

Galaxy Fold
Samsung spent about eight years developing the first foldable smartphone, the Galaxy Fold, which was launched globally in September 2019 after several months of delays. It had to delay its global release on April 26 after initial reviewers reported display problems and crack on screens.

The Galaxy Fold comes with a 18.5 centimetre screen that folds into a compact device with a cover display. With six cameras, it was launched at a price of $1,980.

The device was an instant hit among premium buyers and the company managed to sell nearly 500,000 Fold phones within the first four months of the launch, the company said.

Galaxy Z Flip
The world’s biggest smartphone manufacturer launched its second foldable phone – the Galaxy Z Flip – in February last year.

Devised for ultimate portability, it bends into the size of a wallet. It is a compact palm-sized device when folded, but its screen size nearly doubles to 17cm display when opened. It was launched at a price of more than $1,400.

Galaxy Z Fold2
Samsung unveiled its third foldable phone, the Galaxy Z Fold2, at an online event in September.

With a bigger screen, stronger hinge, long-lasting battery, improved sensors and refined engineering, this bendable device aims to “push the boundaries of mobile experiences”, the company said.

It had a launch price of $1,999 and a 15.7cm display. The screen size extends to 19.3cm when the device is unfolded – which is bigger than many standard tablets in the market.

Brewing competition but no upfront challenge for Samsung
Trailing Samsung's foldable debut, rival companies such as Huawei, Lenovo and Motorola released their own foldable phone models.

Huawei launched its second foldable phone, the Mate Xs, which caters to high-spending customers in February last year. Priced at $2,715, the Mate Xs was $115 more expensive than the launch price of its predecessor, the Mate X, which came out in February 2019.

Despite the entry of new players, Samsung dominated with nearly 73 per cent of the total foldable smartphone market in 2020. Nearly 2.8 million foldable phones were shipped last year.

Brands such as Vivo, Oppo and TCL are expected to launch their foldable handsets this year.

Cupertino, California-based iPhone manufacturer Apple is expected to launch its first foldable phone in 2023. It has developed prototype foldable screens for internal testing, but hasn’t solidified plans to actually launch a foldable iPhone.

Future outlook
By 2023, Counterpoint expects foldable smartphone shipments to grow 10-fold. Samsung will continue to rule the industry with nearly 75 per cent market share, the market research company said.

To enhance its market share and attract more budget customers towards its foldable devices, Samsung is expected to reduce the price of its upcoming phones, industry experts said.

“More affordable Samsung foldable smartphones may be attractive to some users, especially those who have previously purchased plus- or ultra-sized S-series or Note models,” Counterpoint senior analyst Maurice Klaehne said.

Overall smartphone market
Global smartphone shipments are forecast to reach 1.38 billion units this year, up 7.7 per cent over 2020, the International Data Corporation reported.

Foldable smartphones (9 million) will account for just a fraction of the 1.38 billion smartphones expected to be sold this year.

Counterpoint remains bullish on foldables in the long term.

“Three key things must happen before we see any significant volumes – significant price declines with flagships at around $1,000-$1,500, more vendor participants and Apple’s entry into the space,” Mr Park said.
Source: www.thenationalnews.com
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