Samsung Moves to Secure Market Lead
Launching Foldable Phones in 40 Countries Today
Apple Advances Release Date by One Week
Consumer Sentiment Shrinks Amid Recession
Samsung Holds Prices Steady; Apple Expected to Raise Prices
[Asia Economy Reporter Cha Min-young] As Samsung Electronics launched its new models 'Galaxy Z Flip4 and Fold4,' gaining significant popularity both domestically and globally compared to their predecessors, Apple has moved up the release date of the iPhone 14 by one week, signaling a direct challenge. Analysts suggest that Apple is attempting to counter Samsung Electronics, which has taken the lead in the foldable phone market.
According to Samsung Electronics on the 26th, global pre-orders for the Z Flip4 and Fold4, conducted in about 70 countries worldwide, have increased by approximately 5% compared to the previous models. In South Korea, the foldable smartphone series recorded a historic high of about 970,000 pre-orders over seven days. It also surpassed the daily average sales of the S22 series.
On the same day, Samsung Electronics officially launched the foldable phones in about 40 countries worldwide. After first unveiling them in approximately 40 countries including South Korea, the United States, the United Kingdom, France, and Germany, the company plans to expand to over 130 countries by next month. Given that Samsung Electronics MX Division President (CEO) Roh Tae-moon stated during the Galaxy Unpacked event that "the goal is to make this the first year to achieve sales exceeding 10 million units with foldable phones," expectations inside and outside the company are high.
Meanwhile, Apple officially announced through an invitation that it will hold an Apple event on September 8 (Korean time). It is expected to unveil four models of the iPhone 14 series scheduled for release this year. This date is about a week earlier than the usual September 14, widely interpreted as a strategic move to counter Samsung Electronics' dominance. Having lost the bar-type form factor competition to the iPhone, Samsung took a detour strategy with foldables, prompting Apple to advance its schedule.
The market views pricing as a critical factor. Consumer sentiment has weakened amid increased domestic and international uncertainties such as the Russia-Ukraine war, COVID-19 lockdowns in China, and the U.S. interest rate hike trend. According to global market research firm IDC, worldwide smartphone shipments are expected to decline by 3.5% year-on-year to 1.31 billion units. Conversely, raw material prices have surged sharply.
Despite the burden of upgrading foldable phone specifications, Samsung has kept prices at the previous level. Prices vary depending on built-in memory, but for the 256GB model, the Z Flip4 starts at 1,353,000 KRW, and the Z Fold4 starts at 1,998,700 KRW. On the other hand, Apple is expected to record its highest prices ever this year. Apple expert Guo Mingchi predicted that the average selling price (ASP) of the iPhone 14 will increase by 15%. Last year, the iPhone 13 base model 256GB was priced at $899, and this year it is estimated to reach about $1,033. While there are cautious speculations about price freezes or $100 increases, IT tipsters largely anticipate a price hike.
Additionally, due to the burden from the sharp rise in the U.S. dollar value, consumer prices are expected to feel even higher when considering exchange rates. As of the day, the KRW-USD exchange rate stood at 1,333.80 KRW, a 11.7% increase from the beginning of the year (1,193.50 KRW). With the depreciation of the Korean won, the domestic selling price of the iPhone 14 is expected to be about 200,000 KRW more expensive than its predecessor. According to Bloomberg News, a similar precedent occurred in Japan, where the recent depreciation of the yen led to price increases of up to 25% for iPhones and iPads in yen terms.
In the telecommunications industry, it is believed that Apple will not deliberately lower prices to counter Samsung. An industry insider said, "Apple has been maintaining high-end luxury marketing for several years, so it is unlikely to implement a different pricing policy only in Korea," adding, "As prices in the U.S. are either raised or frozen, the domestic prices in Korea will likely be determined reflecting the exchange rate."
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