- Apple to Launch iPhone 15 Series Next Month
- Samsung Foldable vs Apple Bar Rivalry
- Foldable Shipments Grow at 27.6% CAGR... Mainstream May Shift
Samsung Electronics' Galaxy Z Flip5 and Z Fold5 series have shown high pre-order sales, signaling an unprecedented hit. Their 'rival' Apple is set to launch the new iPhone 15 series next month. As the global smartphone market shows signs of shifting towards foldables, a showdown is unfolding between Samsung Electronics, the leader in the foldable phone market, and Apple, which boasts the largest market share in bar-type smartphones.
Industry experts regard the new product sales competition between Samsung Electronics and Apple as a battle between representatives of foldable smartphones and bar-type smartphones. Many expect Apple's overwhelming victory in terms of simple sales volume comparison. However, looking to the future, there is also an assessment that Samsung has secured a favorable position.
Looking at last year's global premium phone market share, Apple was the overwhelming leader with a 75% share. Samsung Electronics ranked second with only 16%. This is a gap that is difficult to close simply by working harder.
However, there is also analysis that, in the long term, Galaxy could catch up to iPhone. The rapidly growing market share of foldable phones is the basis for this.
According to data released by global market research firm Counterpoint Research, the proportion of premium smartphones in total smartphone sales increased significantly from 7% in 2016 to 21% last year. Premium smartphones refer to high-end smartphones priced above $600. For Apple, most smartphones except the budget iPhone SE series fall into the premium category, while Samsung's Galaxy S23 series and Z Flip5 and Z Fold5 series are premium phones. Due to their high prices, the share of revenue from premium smartphones grew from 18% to 55% during the same period.
No Tae-moon, President of Samsung Electronics MX Division, is waving his hand after finishing the closing presentation at 'Galaxy Unpacked 2023' held at COEX in Gangnam-gu, Seoul on the 26th. Photo by Jinhyung Kang aymsdream@
In particular, it is expected that total smartphone shipments will reach 1.371 billion units by 2027, with foldable devices accounting for 48.1 million units, or 3.5% of the total. Considering the compound annual growth rate, the overall smartphone market grows at 2.6%, while foldable devices grow at 27.6%. In other words, Apple's market share, which focuses on bar-type smartphones, could significantly decline in the future.
Samsung is a powerhouse in foldable technology. Samsung Electronics was the first in the world to launch a foldable phone, opening the market. Moreover, Samsung's foldable technology is far ahead of competitors. Currently, Samsung Display almost monopolizes the global foldable panel market. Last year, Samsung Display shipped 13.9 million foldable panels, holding an 83.4% market share. If Apple were to make a foldable phone now, it would have to purchase Samsung Display's products.
Attention should also be paid to Samsung's performance in China, considered the world's largest market. According to Counterpoint Research data, Samsung Electronics recorded a 26% market share in China's foldable phone market in the first quarter of this year. Compared to the same period last year, this is a remarkable 20 percentage point increase. This success is thanks to the popularity of the Galaxy Z Flip4 and Galaxy Z Fold4, released in August last year. Samsung is also eyeing the top spot held jointly by Huawei and OPPO, each with a 27% share. Samsung Electronics is showing strong performance in China's premium phone market after a long time. If the Flip5 and Fold5 released this year perform well, Apple's premium market share could also decline.
If the smartphone form factor paradigm shifts from bar-type to foldable, the day may come when Samsung Electronics, with its advanced technology, leads the global market.
Samsung Electronics also has a strong will to make foldable phones the mainstream smartphone model. Tae-moon Roh, President of Samsung Electronics' MX Division, has set a goal to have foldable phones account for more than half of Samsung's premium smartphone sales by 2025. He said, "Our goal is to increase sales at the level of the global foldable market growth rate (around 50%)" and added, "One out of every three flagship smartphones sold domestically this year will be foldable."
That said, Apple is not simply standing by in the foldable field. In February, Apple obtained a patent for technology that performs functions by touching various parts of the device, not just the screen. This patent included drawings of a wrap-around screen, a technology that applies the display to the back of the smartphone, commonly used in foldable smartphones. Last month, Apple also filed a patent related to 'rollable' displays, a technology where one or both sides of the device roll in and out in various situations.
An industry insider predicted, "If Samsung Electronics' Z Flip5 and Z Fold5 achieve meaningful results in competition with the iPhone 15, Apple, which has been cautious about launching a 'foldable iPhone,' may actively pursue related technology development."
The premium phone market size is fixed. If foldable phones sell more, sales of bar-type smartphones decrease. Samsung currently dominates the market as a strong player in foldable phone technology with rapidly rising market share. The future of foldable phones is seen as closely resembling the future of Samsung Electronics' smartphone business.
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