Galaxy Unpacked Held Today at COEX
Foldable Pioneer Event... Targeting Global Market
Premium Phone Battle with Apple Intensifies in Second Half
Price Up to 2.22 Million KRW... Must Reduce Resistance
Samsung Electronics will unveil its new foldable smartphones, the Galaxy Z Flip5 and Fold5, at today's (26th) 'Galaxy Unpacked' event. The key points to watch are whether the devices, with improved performance and design compared to their predecessors, can compete with Apple in market share and overcome the high device price barrier of up to 2.22 million KRW for consumers.
Samsung Electronics will hold the Galaxy Unpacked event at 8 p.m. today at COEX in Samseong-dong, Seoul, where it will reveal the horizontally folding Galaxy Z Fold5 and the vertically folding Galaxy Z Flip5. Unlike previous years when the event was held overseas in places like New York in August, this time the event is scheduled about two weeks earlier and will be held in Seoul, Korea, for the first time ever.
Improved Design and Performance
The biggest difference from the previous models is the change in the folding mechanism of the display. Although not officially announced yet, it is known that the Fold5 and Flip5 will adopt a waterdrop hinge. Previously, a U-shaped hinge was used, which caused noticeable creases on the screen when unfolded and incomplete adhesion when folded, resulting in slight gaps. The waterdrop hinge folds the display inward in a droplet shape, creating wider creases that are less visible and allowing the screen to fold completely flat.
Another notable change is the increase in the Flip5's cover display size from 1.9 inches to 3.4 inches. Previously, the cover display was limited to basic functions like checking messages. With optimization of key apps from Samsung and Google, users will be able to perform various tasks such as watching YouTube with the screen closed.
Portability has also been improved. The Flip5 and Fold5 are reported to weigh 185g and 254g respectively, which is 2g and 9g lighter than their predecessors. The thickness is reduced by about 0.2mm. Tae-moon Roh, President of Samsung Electronics' MX Division, stated, "We innovated to create a foldable device that is thinner, lighter, and more durable than ever before by enhancing portability." Overall performance has also been upgraded. The application processor (AP), the brain of the smartphone, is equipped with the Snapdragon 8 Gen 2 chip for Galaxy, which received high praise in the Galaxy S23.
Chasing Apple and Securing Foldable Leadership
There is keen interest in whether Samsung can block Apple's pursuit and reaffirm its status as the originator of foldable phones with this new product launch.
According to market research firm Counterpoint Research, Samsung maintained its lead in the smartphone market with a 22% share in the second quarter of this year, following the first quarter. Apple ranked second with 17%, followed by Xiaomi at 12%. However, Apple typically overtakes Samsung in the fourth quarter to claim the top spot.
Samsung's decision to advance the timing of the Unpacked event is interpreted as a strategy to secure early market dominance, targeting Asia where foldable phone market share is high and expanding into Europe.
Samsung's comeback is also anticipated in the premium phone market. Despite an overall slump in the smartphone market last year, sales of premium phones priced above $600 (approximately 780,000 KRW) showed growth. Apple dominated the premium segment with a 75% market share, while Samsung held 16%, ranking second.
It will be worth watching whether Samsung can narrow the gap with Apple and lead the popularization of foldable phones with this new release. Samsung has expressed its intention to firmly establish its pride as the originator of foldables worldwide by unveiling the new foldable products first in Korea.
Today's Unpacked event is expected to ignite the smartphone competition in the second half of the year. Considering that Apple usually unveils new products in September, the iPhone 15 is also likely to be announced in September this year. The iPhone 15 series is expected to feature a USB-C charging port for the first time, along with improvements in battery life and camera lens performance.
According to a recent survey by Gallup Korea, Galaxy phones are strong among middle-aged and older adults, while iPhone usage (65%) among those aged 18 to 29 is twice that of Galaxy (32%), showing a clear preference. Since Samsung targets the MZ generation as the main audience for its foldable phones, it will be interesting to see if it can curb the preference for iPhones.
Carriers: “Telecom Cartel? Device Prices Must Be Lowered”
As the burden of communication fees continues to rise, the high device price of up to 2.22 million KRW is a significant hurdle Samsung must overcome.
Industry estimates suggest that the domestic launch prices of the Flip5 and Fold5 will increase by about 50,000 KRW and 100,000 KRW respectively compared to their predecessors. The Flip5 is expected to be priced at around 1.4 million KRW for the 256GB model and 1.52 million KRW for the 512GB model. The Fold5 is estimated to cost about 2.1 million KRW for the 256GB version and 2.22 million KRW for the 512GB version.
Moreover, there are reports that prices for the new models will be frozen in China and India, the world's largest and second-largest smartphone markets, which could increase domestic consumer resentment.
President Yoon Suk-yeol recently criticized the monopolistic structure of the telecom market and called for dismantling the telecom cartel. In response, the Ministry of Science and ICT announced measures to reduce the burden of communication fees.
SK Telecom, KT, and LG Uplus, the three major carriers, have expressed dissatisfaction with the government's pressure, stating that "the government does not regulate device prices." A carrier official said, "To reduce the burden of communication fees, it is necessary to offer a wide range of price options, including not only high-end and premium phones but also low-priced models, to expand consumer choice."
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