President No Tae-moon's Press Briefing on the 28th
Promise to Lead the Foldable Smartphone Market
Emphasizing Innovation and Perfection of Flip5 and Fold5
Samsung Electronics has bet its future on 'foldable smartphones.' The company announced a goal of selling one out of every three high-end, high-spec flagship smartphones released domestically this year as foldable phones, aiming for a global cumulative sales figure of 30 million units. The newly launched Galaxy Z Flip5 and Galaxy Z Fold5 will be at the forefront.
On the morning of the 28th, Samsung Electronics MX Division President (CEO) No Tae-moon held a press briefing at Samsung Electronics’ Seocho office in Seoul. This was after the 'Galaxy Unpacked' event on the 26th, where the Galaxy Z Flip5 and Fold5 were unveiled for the first time ever in Seoul, South Korea. He engaged in a Q&A session with reporters for about 50 minutes, sharing his outlook on the foldable market as well as Samsung’s strategies and plans.
"Foldables Will Become the Mainstream in Premium Phones"
President No expressed his attachment and confidence in foldable technology, predicting that foldable phones will play a significant role in the premium smartphone market going forward. He stated, "This year, the global foldable sales ratio will exceed 20% of all Galaxy flagship (top-tier) models," and added, "With the Galaxy Z Flip5 and Fold5 leading the way, we plan to sell one out of every three Galaxy flagship smartphones domestically this year as foldables."
He emphasized, "Since the first introduction of the Galaxy Fold in 2019, the global cumulative sales of foldable phones have surpassed 30 million units, making this year a crucial turning point for the mainstream adoption of foldables." He also forecasted, "In many countries including South Korea, the number of foldable units sold will exceed the annual sales volume of the Galaxy Note in the past." This suggests that foldable phones will emerge as a worthy successor to the Galaxy Note.
He added, "Samsung will maintain its status as a key player in the foldable market and lead the foldable market," and explained, "To achieve this, we will listen to the voices of global consumers, integrate them with advanced development, and collaborate with partners to introduce highly usable features to the global market."
He reaffirmed predictions that global demand for foldable phones will reach the 100 million user level within the next few years. He said, "When we first launched foldable products in 2019, we said they would play an important role in premium smartphones in the future," and analyzed, "Seeing multiple players participating in the foldable market, that forecast is gradually being realized, and market research agencies’ predictions are unlikely to be wrong."
No Tae-moon, President of Samsung Electronics MX Division, is giving the closing remarks at the Galaxy Unpacked event held on the 26th at COEX in Gangnam-gu, Seoul. Photo by Jin-Hyung Kang aymsdream@
"Galaxy Z 5th Generation Provides an Innovative Experience"
He also expressed strong pride in the newly launched foldable phone series. He said, "Based on the foldable innovation know-how accumulated over five generations, we have achieved the best innovations in both software and hardware," emphasizing, "With uncompromising flexibility and various features, we provide an innovative foldable experience."
Regarding the recent Unpacked event, he said, "Many global journalists and influencers participated and gave positive feedback," adding, "Global partners have also responded favorably and positively, so internally, expectations for the success of this model are high." He further explained, "Looking at the pre-order quantities worldwide, the Flip5 is expected to account for 65% of sales, and the Fold5 about 35%. The Korean market shows a much higher preference for the Flip compared to the global average." Last year, the global sales ratio for the Galaxy Z 4th generation was about 60% for Flip4 and 40% for Fold4.
Samsung’s foldable technology is expected to expand and develop beyond smartphones to other fields such as tablets and laptops. President No expressed his commitment to continuing innovation by advancing foldable core technologies and know-how. He said, "The trust and affection of domestic consumers for foldables have played a significant role," and added, "We will continue to lead innovation as a foldable pioneer based on core technologies and know-how."
Targeting the Younger Generation Is a Major Challenge... What Are the Measures?
However, capturing the hearts of the MZ generation remains a key issue. According to a recent smartphone usage survey by Korea Gallup, 65% of smartphone users in their 20s use Apple iPhones, while 32% use Samsung Galaxy devices. The iPhone usage rate among people in their 20s increased by 13 percentage points compared to last year, while Galaxy usage dropped by 12 percentage points. Increasing the preference of young consumers who will purchase and use smartphones over the next few years is a heavy task for Samsung. There is keen interest in whether the newly released Galaxy Z 5th generation can become a savior.
On the 26th, domestic and international press and overseas influencers attending 'Galaxy Unpacked 2023' held at COEX in Gangnam-gu, Seoul, are experiencing the Galaxy Z Flip5, Galaxy Z Fold5, Galaxy Watch6, Galaxy Tab S9, and more. Photo by Jinhyung Kang aymsdream@
When asked about the preference gap among different demographics, President No replied, "It is our duty and desire to provide products and features that are loved by all global demographics and can be comfortably used by everyone," adding, "It is undesirable for certain demographics to have significantly higher or lower preferences." He noted, "The Korean market is very sensitive to core technologies and has a high interest in IT devices," but said, "We are working closely with various marketing and sales teams to analyze and study the reasons behind the lower preference among certain demographics compared to the average and to accelerate our efforts." He also explained that the preference gap among demographics in the global market is not as sharp as in Korea.
President No stated, "The Flip5 product line is likely to be more favored by younger consumers," and added, "We will accelerate leveling up optimization by thoroughly analyzing the key features and applications heavily used by the younger generation." He also projected that foldable phones will receive a good response in India, where consumers have a similar high interest in technology and acceptance of new technologies as in Korea, and announced plans to strengthen collaboration with partners.
"Innovation Comes from Consumer Satisfaction"
President No expressed the view that "there is no innovation just for show." When asked about the direction of innovation for the next foldable phone model, he said, "Innovation limited to specific manufacturers or specific consumers cannot be sustained or well-received," and added, "Meaningful innovation that directly provides value to consumers and aligns with what consumers truly like and want must be achieved." He further noted, "Although advanced technology development is progressing in various ways, for those technologies to be commercialized and delivered to customers, they must meet customer demands with sufficient completeness."
He continued, "We are pursuing innovation in directions that consumers truly like and want," and evaluated, "The Galaxy Z 5th generation products have sufficiently reflected those aspects and raised the level of completeness."
President No said the jointly unveiled Galaxy Tab S9 series "will establish a new standard for premium tablets and offer upgraded entertainment and productivity." He also said the Galaxy Watch6 series "will provide users with a healthier tomorrow through a highly refined design emphasizing circular beauty and advanced Samsung Health services."
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