(Bloomberg) — Samsung Electronics Co. said it’s making foldable phones a priority, starting with a major promotional push in the latter half of this year aimed at bringing the premium form factor to a mainstream audience.
Discussing its earnings Thursday, the South Korean maker of the Galaxy family of mobile devices went further and stronger in its commitment to the foldable category. Executives promised “a full-scale flagship marketing” blitz in the second half of the year, led by a handset the company has planned to launch on Aug. 11. The new model is widely expected to be the Galaxy Fold 3.
Samsung traditionally launches new phones in the weeks prior to Apple Inc.’s annual iPhone lineup refresh around September, but this year the company is supplanting the Note series with its Fold launch. Company officials sidestepped a question about the Galaxy Note at Thursday’s earnings press conference, saying only that it’s dynamically addressing the various needs of consumers. It has already said its next foldable device will have S Pen capabilities, the key differentiator of its Note devices.
Read more: Samsung’s $1,999 Fold 2 Rectifies Major Foldable Phone Foibles
“Samsung is putting foldable smartphones upfront to become a dominant player in the premium market at a time when it’s facing fierce competition from Chinese brands in the low- to mid-price segment,” said Jene Park, senior analyst at research firm Counterpoint. “The absence of Galaxy Note series this year will be a positive factor for Fold 3 sales.”
For the Galaxy Fold series to become a mainstream product, Samsung will have to bring its price down. The current Fold 2 model starts at $1,999, higher than the most expensive iPhone or Galaxy S flagship Android options. Still, Samsung needs a premium yet attainable device to put up against the new iPhones in September, especially in a year when it moved up its traditional launch window for the Galaxy S to January, expanding the gap between its release and the latest from Apple.
Counterpoint expects sales of foldable smartphones will increase to 15.4 million units globally from 8.6 million units in 2021 and 3 million units in 2020.
Samsung put an emphasis on “mainstreaming” the foldables category as a whole in its presentation and appears to see it as the long-term successor to its Galaxy Note series as well as a major differentiator from competing products. Foldable phones will start contributing to its bottomline starting in the second half of the year, the company said.
Samsung also discussed advances in its display technology. It plans to launch an under-display selfie camera that would eliminate the screen cutout dedicated for the front-facing camera. The novel technology would allow the camera to capture photos while sitting behind the display panel.
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
