Samsung Electronics is thinking about including a budget-friendly model in its line of foldable phones in an effort to promote the new design faster.
According to TM Roh, the head of its mobile division, “We are trying to make a leap in our price positioning.” It is undoubtedly a challenging task, but we are seriously contemplating the timing.
The largest smartphone manufacturer in the world is in discussions with suppliers to reduce the cost of producing foldables without sacrificing important specifications. The $999 (approximately Rs. 81,000) Galaxy Z Flip from Samsung has swiftly become the company’s most popular model in the category. Samsung was the first major phone manufacturer to offer a foldable for less than $1,000 (about Rs. 82,000).
Samsung’s foldables would be better positioned to compete with Apple’s mainstream iPhone line, which starts at $799 (approximately Rs. 65,000). In order to increase the notion of foldables as a high-end product, the Suwon-based company has thus far marketed them as premium and expensive gadgets.
The decline of the overall smartphone market over the past 1.5 years has not slowed the development of foldables. IDC forecasts predict that close to 50 million foldables will be deployed in 2027, whereas Counterpoint Research estimates that the number will be closer to 100 million. One of Counterpoint’s presumptions is that an iPhone with foldable screens will be available in two years.
According to Jene Park, senior analyst at Counterpoint, the introduction of a foldable iPhone in 2025 “could provide another growth spurt for the segment.”
In order to maintain its dominant market share, Samsung is using a dual-track strategy that positions its premium flagship foldables as products while simultaneously lowering the price at the entry level. Rival Chinese manufacturers of Android devices have all already released their own foldable models, albeit they have so far mostly been available on the domestic market.
Google, the maker of Android, has also entered the race with its Pixel Fold gadget, but only in a few locations. The most accessible and international seller of foldables is still Samsung.
According to Roh, the increased rivalry is proof that foldables are growing more popular. Samsung will work with software partners like Microsoft, Meta Platforms, and Alphabet’s Google in an effort to keep its advantage. The executive stated that it was in talks with Google and Microsoft about working together on generative AI without going into further detail.
Samsung will keep working to increase its market share in China, where it now has a meager 1% of the market, and will rely on the popularity of its premium line to do it, according to Roh.
