Next Year Foldable Phone Sales Expected to Grow 100%
Interest in BH, KH Vatec, Finetechnics
[Asia Economy Reporter Minji Lee] Samsung Electronics is expected to maintain an overwhelming market share in the foldable smartphone market. Securities firms have also presented positive outlooks for related component stocks in line with the spread of foldable smartphones.
According to KB Securities on the 28th, Samsung Electronics' foldable smartphone shipments this year are estimated at 7 million units, expected to increase by 233% compared to the previous year. Detailed sales volumes are expected to be 4.5 million units for the Galaxy Z Flip and 2.5 million units for the Galaxy Z Fold. In particular, the Flip product is expected to continue strong sales following last year, as it appeals greatly to consumers with its lower price compared to the Note product, lighter weight, and design resembling cushion cosmetics. Lee Changmin, a researcher at KB Securities, explained, “Next year, Samsung Electronics' foldable phone shipments are expected to double from the previous year to 14 million units,” adding, “As with the previous model, Flip and Fold products will be released together in the third quarter.”
Next year, various companies are expected to introduce foldable smartphones, but Samsung Electronics is likely to maintain an overwhelming market share (78%) compared to other competitors. Price competitiveness and increasing preference for foldable phones are expected to positively influence maintaining the market share.
Researcher Lee Changmin analyzed, “The product’s high quality is well-known, and this year the launch price was lowered by about 400,000 KRW, reducing the price gap with the top-tier iPhone model,” adding, “Since new technologies to be introduced in future flagship smartphones are expected to be first applied to foldable smartphones rather than the Galaxy S, preference is expected to increase further.” News of the discontinuation of the Galaxy Note is also expected to impact the increase in foldable phone sales.
Furthermore, it is expected that Samsung’s technological edge over other companies should be taken into account. Samsung Electronics highlighted its technological gap with competitors by being the first to support under-display cameras, S Pen, and waterproof features in foldable smartphones released this year, and this strategy is expected to continue next year. It is also anticipated that Samsung will diversify its product lineup by first releasing double folding phones or rollable phones. Researcher Lee Changmin said, “Although Chinese companies’ foldable phone sales have been limited to the domestic Chinese market due to technology patent issues and low yield rates, Samsung Electronics targets the global market,” adding, “Unlike Chinese companies that lose money selling foldable phones, Samsung Electronics excels in production capacity, yield, and profitability compared to competitors.”
As Samsung Electronics is expected to maintain a high market share in the foldable smartphone market next year, it is predicted that interest in BH, KH Vatech, and Fine Technics could also increase. Researcher Lee Changmin advised, “BH produces 100% of the OLED RFPCB used in Samsung Electronics’ foldable smartphones, and KH Vatech supplies the external hinges,” adding, “Fine Technics supplies the internal hinges installed inside foldable panels, so they are expected to benefit.”
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