As the growth of foldable phones slows, Samsung Electronics faces uncertainty regarding the success of its new products set to be unveiled next month. Industry insiders believe user preference for the 'foldable' form factor has waned due to weak durability relative to price. Compounding this issue, Chinese manufacturers are releasing cost-effective foldable phones, further reducing Samsung Electronics' market share. Attention is focused on whether Samsung Electronics can rebound with the Galaxy Z Flip and Fold 7.
According to market research firm TrendForce, foldable phone shipments last year totaled 17.8 million units, accounting for about 1.5% of the overall smartphone market. Market research firm Counterpoint Research noted that global foldable phone shipments increased by 7% in the first quarter compared to the previous year. This is the lowest figure in terms of first-quarter growth rate since 2021. Particularly in Europe, foldable phone sales in the first quarter increased by about 4% compared to last year, with Counterpoint Research describing this as 'a minimal growth rate for an emerging market.'
◇ "Expensive and weak"… the neglected foldable phone
The rapid decline in popularity of foldable phones is largely attributed to their high price. The latest model, the Galaxy Fold 6, has a retail price ranging from 2.22 million to 2.7 million won for the 256GB, 512GB, and 1TB models. Compared to the Ultra model of the Galaxy S25 series, which boasts the best performance, it is over 600,000 won more expensive at the same storage capacity. The retail prices of the Galaxy Z Flip 6 are 1.485 million won for the 256GB version and 1.6434 million won for the 512GB version.
Foldable phones are regarded as less durable than traditional bar-type smartphones. Using a foldable phone requires bending and unfolding the display thousands of times over an extended period. In this process, gaps may form around the hinge, leading to degraded display performance. In the case of early models of Samsung Electronics' foldable phone, the launch was indefinitely postponed following external testing.
Jan Strijak, vice president of Counterpoint Research, said, 'The price of foldable phones remains too high to appeal to the general public,' adding that 'most consumers are still unaware of the use cases for foldable phones and have enduring concerns about the durability and lifespan of the devices.'
◇ New products coming in July… will they beat cost-effective Chinese products?
According to Samsung Electronics, the new models are expected to be the thinnest and lightest in the history of the Galaxy Z series. The Galaxy Z Fold 7 is anticipated to have a thickness of 3.9 to 4.5 mm when opened. The Galaxy Z Fold 6 measures 5.6 mm, and the Galaxy Z Fold Special Edition is 4.9 mm thick. Samsung Electronics emphasized that the Galaxy Z Fold 7 provides an experience comparable to the Ultra-grade Galaxy S series.
However, the industry also suggests that the declining interest in foldable phones among users could necessitate a price reduction. Some analysts predict Samsung Electronics may unveil a budget-friendly foldable phone in July.
Samsung Electronics' global market share is already being outrun by Chinese companies like Huawei and Xiaomi, which compete on price. The Xiaomi Mix Fold model can currently be purchased online for around 1.7 million won.
According to market research firm IDC, Samsung Electronics' share of the foldable phone market dropped to 32.9% last year from 83.6% in 2021. Huawei's share rose from 9.3% in 2021 to 23.1% last year.
An IT industry official stated, 'It seems consumers have no compelling reason to seek out the expensive and short-lived foldable phone form factor,' adding, 'It is difficult to increase sales in the U.S. market, especially with the Trump administration's threats of imposing tariffs.'