"Great Start" Galaxy Foldable Pre-Order Frenzy... Early Activation Extension Also Under Consideration

Samsung Electronics unveiled the foldable smartphones 'Galaxy Z Fold3' and 'Galaxy Z Flip3' at 'Galaxy Unpacked 2021'. On the 12th, customers visiting the Samsung Delight Shop in Seocho-gu, Seoul, are seen exploring the new products. The newly released products will be available for pre-order in Korea from the 17th to the 23rd and are scheduled for a global sequential release on the 27th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Seulgina Jo] The initial sales performance of Samsung Electronics' new foldable smartphones, the 'Galaxy Z Fold3' and 'Galaxy Z Flip3', which have entered pre-opening, is remarkable. Pre-order sales alone exceeded 800,000 units in just one week, showing a strong competition against the strategic flagship S series.

According to the telecommunications industry on the 24th, the pre-order sales volume of the Z Fold3 and Z Flip3 from the 17th to the 23rd is estimated to be close to 600,000 units. Including the unlocked units sold directly by Samsung Electronics without going through carriers, it is certain that more than 800,000 units were sold during the pre-order period.

This is more than 10 times the pre-order sales volume of the previous model, the 'Galaxy Z Fold2' (80,000 units). An industry insider said, "Interest in foldable phones has increased significantly compared to the previous model," adding, "It is at a level comparable to the 'Galaxy S21' and 'Galaxy Note20' series."

Some consumers who purchased the Z Fold3 and Z Flip3 as unlocked devices received notifications of delivery delays due to product shortages. Carriers are also informing some pre-order customers about possible delays.

As the initial sales enthusiasm rises, Samsung Electronics is considering extending the pre-opening period until September. This measure aims to minimize confusion caused by potential supply issues.

A representative from a carrier agency said, "Although no official notice has been issued yet, the pre-order atmosphere is so good that securing some models is difficult," explaining, "Since not all pre-orders lead to actual activations, the specific extension deadline will be confirmed after observing the pre-opening atmosphere on the 24th."

Looking closely at the pre-order sales results, the Z Flip3, which features a clamshell shape and stylish colors among the new foldable phones, stood out in popularity. It is reported that the Flip3 accounted for a much higher proportion of total pre-orders. According to a survey conducted by online mobile phone distribution site MNPrice targeting 6,696 pre-order customers, the Z Flip3 (57%) was chosen more than the Z Fold3 (43%).

Inside and outside the industry, Samsung Electronics lowering the price barrier by reducing the foldable phone's retail price by 400,000 KRW compared to the previous model is cited as a factor for this initial success. The retail price of the Z Fold3 ranges from 1,998,700 to 2,097,700 KRW, and the Z Flip3 is priced at 1,254,000 KRW. Especially for the Z Flip3, a carrier subsidy of up to 500,000 KRW, double that of the previous model, is provided, lowering the actual purchase price to around 670,000 KRW.

On the pre-opening day, the three major carriers confirmed carrier subsidies of up to 240,000 KRW for the Z Fold3 and 500,000 KRW for the Z Flip3. Based on the highest rate plans, the subsidies are as follows: for the Z Fold3, SK Telecom 170,000 KRW, KT 240,000 KRW, LG Uplus 230,000 KRW; for the Z Flip3, 500,000 KRW each.

However, it is uncertain whether this pre-order success will continue after the official launch. The flagship S21 series released by Samsung Electronics earlier this year recorded 120,000 activations on the first day and extended the pre-opening period due to shortages of some models, showing clear initial success, but its performance six months after release was about 20% lower than its predecessor.