Samsung Faces Losing Top Spot... Chinese Companies Targeting Galaxy's Vacancy

Global Market Research Firm DSCC Outlook
"Samsung to Regain Leadership in the Second Half"

Samsung Electronics, considered the leader and absolute powerhouse in the foldable phone market, is expected to lose its top position to a Chinese company in the first half of this year.

Photo by Jinhyung Kang aymsdream@

Global market research firm DSCC analyzed that Chinese company Huawei will surpass Samsung Electronics for the first time in the foldable phone market share in the first quarter of this year. The expected gap in market share is even more shocking. DSCC projected Huawei’s market share at 40% and Samsung Electronics’ in the high 10% range for Q1 this year.

Samsung Electronics, which launched the world’s first foldable phone in 2019, boasted overwhelming growth and recorded a 90% market share in the second half of 2021.

DSCC forecasted that the global foldable phone market will grow by more than 100% year-over-year in Q1 this year due to the uprising of Chinese companies. The leading companies driving this growth are Huawei and Honor from China. Huawei is scheduled to release two foldable phones that fold vertically, similar to the Samsung Galaxy Z Flip5, this year, while Honor and Motorola are also preparing new models. DSCC explained, “Huawei, which increased its market share starting from Q4 last year, is expected to surpass Samsung in foldable phone market share in the first half of the year due to the strong performance of Mate X5 and Pocket 2 and Samsung’s lack of new products.”

Huawei Foldable Smartphone Mate X5

However, it is analyzed that Samsung’s new product launches will put a brake on Huawei’s rapid advance. Samsung plans to release new Galaxy Z Flip and Z Fold models in the second half of the year, with the Galaxy Z Fold notably being prepared as the first-ever ‘affordable model.’ Currently, Samsung Electronics is developing two versions of the Galaxy Z Fold6, targeting a July release: one with pen input functionality and one without. This strategy aims to reduce the price burden of foldable smartphones and expand demand. DSCC predicted, “Samsung Electronics is expected to regain leadership in the second half of this year.”

Although foldable phone growth has fallen short of expectations, it is still growing annually. Samsung Electronics’ foldable phone sales last year are estimated to be below 10 million units. Despite releasing the new Galaxy Z Fold5 and Galaxy Z Flip5 earlier than usual, sales reportedly did not meet expectations. This is believed to be due to the aggressive competition from Chinese companies and the market growth falling short of expectations.