Samsung Electronics raised its sales target for foldable phones for next year. To reach the 130 trillion won revenue goal recently set by the Mobile eXperience (MX) division for next year, it is inevitable to expand sales of the high-end lineup of foldable phones. The industry sees a rebound in sales of the "flip" model, which has declined in recent years, as the key variable. Accordingly, there is speculation that Samsung Electronics will take strategic steps next year to tackle thickness, weight, and price all at once.
◇ Next year's foldable phone sales target set at 7 million units… "Reversing flip model sales is the top priority"
According to the electronics industry on the 14th, Samsung Electronics is said to have raised the sales target for its new foldable phones to be released next year to 7 million units. Compared with 2024 sales (5.21 million units), next year's target is about 35% higher. While this year's foldable phone sales for Samsung Electronics have not yet been tallied, the industry estimates they have exceeded the 6 million unit target. Analysts say Samsung Electronics' aggressive upward revision of its foldable phone sales target stems from confidence in the "Galaxy Z Fold 7," which achieved success on the back of its thickness innovation.
Samsung Electronics' MX division generated 114 trillion won in revenue last year. The industry projects revenue of 120 trillion won this year thanks not only to strong sales of the Galaxy S25 but also to the success of the Galaxy Z Fold 7. "To achieve next year's MX division revenue target of 130 trillion won, sales of foldable phones, which are priced high from the mid-1 million won range to the high-2 million won range, need to increase," an electronics industry official said, adding, "Among them, the top priority is to find a way to reverse the declining sales of the flip model."
Sales of the flip model fell from 3.66 million units in 2023 to 2.89 million units in 2024, and the industry estimates that sales declined from last year this year as well due to losing the No. 1 spot in the U.S. flip model market to Motorola. According to U.S. market research firm BayStreet Research, from January to July this year, Motorola recorded a 78% share (by shipments) in the U.S. flip foldable market, overtaking Samsung Electronics (22%) to take the top spot. The industry says that as recently as last year, Samsung Electronics held more than a 50% share of the U.S. foldable phone market.
By contrast, sales of the fold model are increasing. They rose from 2.09 million units in 2023 to 2.32 million units in 2024, and with the Galaxy Z Fold 7 gaining popularity this year, the industry expects sales to have increased from last year. At the third-quarter earnings conference call, Araujo Daniel, a senior vice president at Samsung Electronics' MX division, said, "Thanks to the launch of the new flagship model, revenue and operating profit increased from the previous quarter, and particularly with strong Galaxy Z Fold 7 sales, foldable volume and value both grew by double digits year over year."
◇ Z Flip 7 lacked innovation... "The new release must innovate on thickness and weight and lower the price"
The industry believes the reason only the fold model succeeded this year is that the flip model lacked innovation. The Galaxy Z Fold 7 weighs 215 grams, 10% less than its predecessor, and its thickness when unfolded is 4.2 mm, 25% thinner. By contrast, the Flip 7 weighs 188 grams, just 1 gram less than its predecessor, and its thickness when unfolded only decreased 5.8% to 6.5 mm.
Because of this, the industry says that to increase flip model sales, innovation in "thickness and weight" is needed. "Samsung may focus on improving the weight and thickness of the flip model in the second half of next year, while dropping the edge model from the Galaxy S26," an electronics industry official said, adding, "Changes in the flip model's thickness and weight next year will be a barometer for achieving the MX division's revenue target."
Price is also seen as a key variable. The reason Samsung ceded the top spot in the U.S., its main market, to Motorola in the flip foldable market in the first half of the year is that Motorola created a sensation with its value for money. Motorola's flip model, "Razr 60," is about 37% cheaper than the "Galaxy Z" flip model. Some in the industry also predict Samsung could respond by adding a lineup of mid-priced flip models with strong value for money. "There is a possibility that Samsung will release two models only in regions where flip models sell relatively poorly, such as the United States and China," an electronics industry official said. "It cannot be ruled out that Samsung will launch both a model that dramatically reduces thickness and weight and a standard flip model in the 1 million won range to create a price gap."