Samsung Electronics is modifying its smartphone launch strategy from twice a year (in January-February and July-August) to an all-year-round approach. This decision is based on the belief that continual product launches throughout the year can maximize demand increases. In response to this change in strategy by Samsung Electronics, Apple is also expected to increase its number of new product launches from once a year to twice a year.
◇ Samsung Electronics releasing new products every month… flagship model launches every quarter
According to industry sources, Samsung Electronics has been releasing new products in South Korea every month since May. The releases started with the Galaxy S25 Edge in May, followed by the Galaxy A36 (5G) in June, the Galaxy Z Fold7 and Flip7 in July, and the Galaxy Quantum6 (A56·5G) in August. This month, the Galaxy S25 FE is expected to be released. This phenomenon is not unique to the Korean market.
Samsung Electronics is also releasing new products almost bi-monthly in the United States and the United Kingdom. Starting with the Galaxy A16 (5G) in January, followed by the Galaxy S25 series in February, the Galaxy A36 (5G) in March, the Galaxy S25 Edge in May, the Galaxy A56 (5G), and the Galaxy Z Fold7 and Flip7 in July, there are plans to release the Galaxy S25 FE in September. While the release countries are yet to be determined, Samsung Electronics plans to launch a new triple foldable phone, tentatively named Galaxy Tri-fold, after October, so the effect of new product launches is expected to continue.
An industry source said, "Previously, Samsung Electronics only released flagship models twice a year in January-February and July-August, but this year, with the addition of Edge models and triple foldable phone models, flagship models will be launched four times a year. This means that it has become possible to release flagship models on a quarterly basis," adding, "In effect, the off-season when flagship new products were not launched has disappeared." Another industry source noted, "The mid-range Galaxy A models were previously launched around the same time as flagship models, but starting this year, the timing of their release has diversified, enhancing the effect of new product launches every month."
◇ The 'year-round launch' strategy is paying off… significant reflection expected in second-half results
While the Galaxy S25 largely drove Samsung Electronics' smartphone performance in the first half of the year, industry sources report that the effects of Samsung Electronics' strategy began to take shape in the second quarter, which began in earnest with the release of the Galaxy S25 Edge in May. The combined operating profit of Samsung Electronics' Mobile Experience (MX) and Network (NW) divisions in the first half was 7.4 trillion won, a 29% increase from the previous year (5.74 trillion won). Notably, the combined operating profit for the second quarter (3.1 trillion won) showed a 39% increase compared to the previous year (2.23 trillion won). An IT industry source commented, "If Samsung's year-round new product launch strategy is fully reflected, the MX division's performance is expected to improve further in the second half compared to the first half."
This trend has been particularly evident in major markets like the United States and Korea. Market research firm Canalys reported that in the second quarter, Samsung's market share in the U.S. reached 31%, an increase of 8 percentage points (P) compared to the same period last year. In the second quarter, Samsung phone shipments in the U.S. grew by 38% compared to the previous year. The gap in market share with Apple in the U.S. also narrowed from 33% P last year to 11% P this year. According to market research firm Counterpoint Research, from January to July this year, Samsung phones accounted for 82% of the cumulative sales in Korea.
◇ Apple also modifying its strategy with new product launches twice a year
As Samsung Electronics strengthens its year-round launch strategy, its competitor Apple has also begun modifying its existing strategy. Until now, Apple has launched new iPhone models only once a year. Although Apple has previously launched a mid-range product, the 'iPhone SE,' in the first half of the year every three to four years, it has been customary to unveil new iPhone models in September. However, starting next year, the official one-time-a-year iPhone launch is expected to be broken. According to reports from Bloomberg and other media, Apple plans to release a mid-range new product, the 'iPhone 17e,' in the first half of next year. This product is the successor to the 'iPhone 16e,' a mid-range iPhone that Apple released for the first time in three years in the first half of this year. An industry source stated, "The iPhone 17e implies that Apple will systematically release mid-range iPhones with regular numbering every year."
Professor Kim Kyung-won of Sejong University's Department of Business Administration said, "Samsung's year-round new product launch strategy has its advantages, but releasing too many new products could lead to 'cannibalization' where the products eat into each other's demand," adding, "If the stimulus of new product launches continues, consumers may become less sensitive, and purchasing demand could decrease."