[Asia Economy Reporter Eunmo Koo] The foldable smartphone market, which involves devices that fold and unfold, is expected to grow tenfold by 2023. Samsung Electronics, the leader in the foldable phone market, is anticipated to maintain its market dominance by selling three out of every four devices.
According to global market research firm Counterpoint Research on the 5th (local time), global foldable phone shipments this year are estimated to reach approximately 9 million units, tripling compared to last year. Samsung Electronics, which leads the foldable phone market, is expected to maintain a minimum market share of 88%.
The growth trend of the foldable phone market is expected to continue. Counterpoint Research forecasts that the global foldable phone market will be ten times larger by 2023 than it is now. Although Samsung Electronics' market share is expected to decline slightly, it is still predicted to hold a dominant position with around a 75% market share.
There is also speculation that Apple, which has yet to release a foldable phone, may enter the market in 2023. Counterpoint Research stated, "If Apple enters the foldable phone market, foldable phones will become mainstream devices in the smartphone market and contribute to strengthening the global supply chain."
Samsung Electronics plans to declare the popularization of foldable phones and solidify its leading position through its Galaxy Unpacked event in the second half of the year. At the Unpacked event scheduled for the 11th, the next-generation foldable phones ‘Galaxy Z Fold3’ and ‘Galaxy Z Flip3’, as well as new products such as the smartwatch ‘Galaxy Watch4’ and wireless earphones ‘Galaxy Buds2’, will be unveiled in large numbers.
Samsung Electronics’ smartphone strategy for the second half of the year is an ‘all-in’ on foldable phones. The company will not release the Galaxy Note series in the second half and will focus on foldable phones. Currently, Samsung holds the number one global smartphone market share, but when it comes to flagship models, it trails behind Apple. In particular, in the 5G smartphone market, Samsung’s sales share is 14%, behind Apple’s 54%. However, the story is different in the foldable phone market. Samsung Electronics is the leader with a 73% market share (based on shipments) in the overall foldable phone market.
Whether Samsung Electronics retains the title of ‘number one smartphone market share’ will depend on the success of foldable phones in the second half. Samsung is expected to lead the full-scale growth of the foldable phone market by pricing new foldable phone models about 20% lower than their predecessors. Since the Galaxy Note series will not be released this year, these foldable phone lineups will serve as Samsung’s main models in the second half. The Z Fold3 is expected to be priced in the 1.99 million KRW range, and the Z Flip3 around 1.28 million KRW.
Earlier, Sungkoo Kim, Executive Vice President of Samsung Electronics’ Wireless Business Division, said during the Q2 earnings conference call, "In the second half, we will focus on popularizing foldable phones and expanding sales volume." He added, "For new models, we have enhanced product completeness and innovation tailored to customer characteristics and will provide a differentiated user experience suited to the foldable form factor." He further stated, "In addition to product competitiveness, we will actively promote flagship marketing and expand in-store displays. Through this, we expect to significantly increase sales volume, achieve economies of scale, and secure profitability through optimized product design."
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