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Samsung wants to bring foldable phones into the mainstream to boost sales
According to reports, Samsung Electronics said that it will push the foldable screen mobile phone into the mainstream, and its sales will surpass the Galaxy Note series. Samsung said it was looking to boost sales of foldable phones to boost the profitability of its mobile division. Currently, Samsung Electronics’ mobile division is taking a hit due to rising material costs and weakening consumer demand.
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In 2011, Samsung Electronics launched the Note series of smartphones for the first time. Over the years, the Note series of phones have had a lot of success with larger screens. But growing smartphone screens, including Samsung’s own Galaxy S series, forced the eventual discontinuation of the Note phone. Released in 2020, Note 20 is the last phone in the Note series. Meanwhile, Samsung Electronics filled the void with the Galaxy S Ultra model.
In 2019, Samsung Electronics launched the Galaxy Fold, its first folding screen phone. Since then, Samsung Electronics has successively released other models of folding screen phones. But today, foldable screen phones are still a “niche” product in the entire smartphone market.
And Samsung Electronics said today that it hopes to make them “mainstream” to boost the profitability of its smartphone division. Sung Koo Kim, vice president of Samsung Electronics Mobile Experience Division, said in a conference call today: “We will continue to maintain the sales momentum of Galaxy S series phones in the second half of this year. In addition, we will also launch new folding screen phones and drive their sales. Exceeds sales of the Note series.”
It’s unclear when Samsung’s foldable phone sales will surpass the Note series. But for reference, Samsung’s Note line of phones shipped 190 million units over its entire life cycle. So far, Samsung has only shipped more than 10 million foldable-screen phones.
Samsung Electronics plans to release a new foldable phone next month. At present, Samsung’s latest two folding screen phones are Galaxy Z Flip 3 and Galaxy Z Fold 3, and the cumulative sales so far are about 8 million. Bryan Ma, an analyst at leading research firm IDC, said: “Samsung’s bet on foldable makes sense: it’s a high-end and high-margin product that can drive up average selling prices. , and set Samsung apart from the competition.”
Brian Ma also said: “Even if the Note series still has loyal fans, it is a decade-old product. Putting the bet on a foldable phone can keep Samsung ahead.”
The profitability of its smartphone division has also been a major focus for Samsung Electronics. In the second quarter of this year, Samsung Electronics mobile business reported a quarter-on-quarter decline in profit due to higher costs and unfavorable currency effects. But at the same time, revenue rose year-over-year due to higher sales of high-end products such as the Galaxy S22 smartphone and Tab S8 tablet.
Samsung Electronics expects the smartphone market to remain stable or grow slightly in the second half of this year, and foldable-screen phones will be the key to improving profitability.