
Samsung's Bold Move: Thinner Foldables Take Center Stage as Competition Heats Up!
2025-07-09
Author: Ken Lee
Samsung Unveils Game-Changing Foldable Phones
In an electrifying event on Wednesday, Samsung Electronics revealed its latest line of foldable smartphones, boasting a sleek and lightweight design aimed to reclaim market dominance amidst fierce competition, especially from Chinese brands like Huawei and Honor.
A Tense Race Against Rivals
The stakes couldn't be higher for Samsung, which ceded its global smartphone supremacy to Apple in 2023. With rivals closing in, Samsung is relentlessly pursuing the premium smartphone segment that Apple has yet to penetrate.
Navigating Challenges in the Tech Landscape
Adding to the pressure, Samsung's chip division is experiencing a profit downturn, partially due to delayed AI chip supplies to Nvidia. Nonetheless, Choi Won-joon, Samsung's mobile president, is laser-focused on steering the company toward becoming a trailblazer in AI-powered smartphones.
AI Integration: The Future of Foldables
"Foldable phones integrated with AI are primed to go mainstream by delivering a unique user experience," Choi stated during his first media interview following his promotion. He emphasized Samsung's commitment to collaborating with Google to enhance AI features, contrasting with Apple's in-house technologies that have struggled to keep pace.
A Premium Product Strategy Amidst Price Hikes
In April, Samsung announced a strategy focused on premium products, even as U.S. tariffs posed risks for demand and elevated component costs. The Galaxy Z Fold 7 has seen a price increase to $1,999, while the Galaxy Z Flip 7 FE aims to capture budget-conscious consumers at $899.
Innovations to Tackle Industry Challenges
Analysts are optimistic that Samsung's latest foldable models have addressed longstanding issues such as bulkiness. The Galaxy Z Fold 7 is now 10% lighter and 26% thinner than its predecessor, aiming to create an upscale appeal around the brand.
Is the Niche Market Here to Stay?
Despite these advancements, analysts caution that foldables might remain a niche market, accounting for only 1.5% of total smartphone sales. Projections from Canalys suggest that Samsung's foldable shipments, which peaked in 2022, may stabilize or slightly decline through 2025.
Facing Fierce Competition in the Foldable Space
Although Samsung commands a significant 4% of its total phone sales from foldables, they represent a staggering 16% of phones priced over $800. Yet, the rise of brands like Honor and Huawei is nibbling away at Samsung's stronghold, particularly in the Chinese market.
Looking Ahead: The Future of Foldables
During the New York unveiling, Choi expressed intent to focus on sales in the U.S., Europe, and South Korea. Moreover, he revealed that Samsung is diligently working on a trifoldable phone, promising an intriguing development for the future.