[Concall] Samsung Electronics "Promoting Popularization of Z Fold and Z Flip Foldables"

[Asia Economy Reporter Seolgina Jo] Samsung Electronics has reaffirmed its policy to popularize foldable smartphones.

Kim Seong-gu, Executive Vice President of Samsung Electronics' Wireless Business Division, stated during the Q1 2021 earnings conference call on the 29th that regarding the plan to launch a foldable lineup in the second half of the year, "We will promote the popularization of foldables such as the Galaxy Z Fold and Z Flip."

Kim explained, "The Galaxy Z Fold will differentiate itself with a large screen and entertainment features to target the premium market, while the Z Flip will satisfy millennial and female demand with its stylish design and improved usability." Although he could not disclose specific lineup launch plans, he added, "We will enhance the foldable ecosystem and satisfy both product and customer experience."

Samsung Electronics will not release the Galaxy Note series, which has been unveiled every year in the second half through Unpacked events, this year. Instead, foldable smartphones such as the Galaxy Z Fold and Z Flip are expected to take its place. There were initial expectations that a budget-friendly foldable phone called 'Lite' priced around 1 million KRW and a double-folding phone that folds twice would be released within the year, but analyses suggest they will not be included this year.

In the foldable phone market, which has been virtually dominated by Samsung Electronics, Chinese manufacturers such as Xiaomi and Huawei, emphasizing cost-effectiveness, have recently issued challenges one after another. According to market research firm Counterpoint Research, the global foldable phone market is expected to grow threefold from 5.6 million units this year to 17.2 million units next year.

Meanwhile, Samsung Electronics' IM division, responsible for smartphones and tablets, recorded an operating profit of 4.39 trillion KRW in the first quarter alone. This accounts for nearly half of the total operating profit (9.38 trillion KRW). It represents a 65.7% increase compared to the same period last year, which was severely impacted by COVID-19.