Samsung Electronics is creating a stir in the Japanese smartphone market, dubbed the 'graveyard for Korean phones.' Following the blockbuster performance of the 'Galaxy S25,' which is equipped with unprecedented artificial intelligence (AI) capabilities, the newly released foldable phone 'Galaxy Z 7' series, launched in Japan this month, is expected to further escalate the upward trend in the second half of the year.
◇ Effect of AI phone 'Galaxy S25' boosts Samsung… 60% increase in shipments in Japan
According to market research firm Counterpoint Research on the 29th, Samsung Electronics' shipments in the Japanese smartphone market in the second quarter of this year increased by 60% compared to the same period last year. The market share (based on shipments) recorded 10%, following Apple (49%) and Google (11%). Samsung rose from 5th to 3rd place in market share within a year. In contrast, Sharp, a Japanese smartphone manufacturer that ranked 3rd last year, saw its shipments decrease by 28% compared to the previous year, reducing its market share to 6%.
The Japanese market is well-known for being difficult for Korean phones to sell, to the extent that some removed the 'Samsung' logo to make sales easier. Last year, Samsung Electronics' market share in Japan was merely 6%. However, forecasts suggest it could achieve double-digit market share this year. An industry insider noted, 'Although prices have been frozen to promote AI phones, it seems the impact of the Galaxy S25, which incorporates Qualcomm application processors (AP) across all models, boosting performance, has been reflected.'
◇ AI phone expansion helps absorb market share from China's Xiaomi
Industry reports indicate that increasing interest in AI phones in Japan has led to rising demand for flagship models (Galaxy S25) and mid-range products (Galaxy A series), resulting in an increase in Samsung's phone market share. There are numerous accounts stating that the incorporation of AI into the cost-effective Galaxy A has been beneficial. Some analyses suggest that the mid-range Galaxy A has absorbed demand for Chinese products emphasizing value for money. According to Counterpoint Research, Xiaomi's market share in Japan fell to 5%, a decrease of 3 percentage points from last year (8%), with sales volume dropping by 33% compared to the previous year in the second quarter.
◇ 'Galaxy Z Fold7' ranks number one in online sales in Japan immediately after launch
On August 1, Samsung Electronics launched the new foldable phones 'Galaxy Z Fold7' (hereafter referred to as Fold7) and 'Galaxy Z Flip7' (hereafter referred to as Flip7) in Japan. According to industry sources, during the first week of product launch (July 28 to August 3), the Fold7 ranked first and the Flip7 ranked second in sales on the online shop operated by NTT Docomo, Japan's leading telecommunications company. This marks the first time Samsung has achieved the top sales at the Docomo online shop in the first week of launching the Galaxy Z series in Japan.
An industry insider said, 'Although the product launch date in Japan was August 1, so only about three days of sales were reflected, occupying both first and second places is a testament to the product's recognition.' The Fold7 has received praise from foreign media for being the thinnest foldable phone currently available, measuring 8.9mm when folded and 4.2mm when unfolded.
The impact of the launches of the Fold7 and Flip7 is also being felt in the United States. In the U.S., they recorded the highest pre-sale figures ever for Samsung's foldable phone series. According to Samsung Electronics, the total pre-sale volume of the Galaxy Z 7 series increased by more than 25% compared to the previous model, with reservations through local telecommunications companies surging by over 60% compared to the last generation.
Kim Yong-seok, a distinguished professor at Gachon University, said, 'Samsung's strategy of expanding AI features to its mid-range models and the implementation of the thinnest foldable phone will yield future synergies,' adding, 'It is expected that the increase in market share in Japan will not be temporary.' In July, Samsung Electronics' Acting President of the DX Division, Roh Tae-moon, announced, 'We plan to equip more than 400 million devices with Galaxy AI this year,' which is double the target set last year (200 million devices).