Samsung Electronics Co. Ltd. (Samsung), the leading South Korean electronics company, unveiled its popular yet updated version of Galaxy S smartphone on Tuesday, February 11, 2020, at a launch event in San Francisco.
On Sunday, Samsung, in a big surprise for customers, showed the first glimpse of a new square-shaped and a flip phone model, Galaxy Z Flip in a US TV commercial channel. With this series of new models of smartphones, Samsung is seeking to revive its strength and fight against its core rival, Apple Inc. (Apple).
Samsung’s New Folding Phones
With the rise of declining the global market for a smartphone, many electronic and mobile phone companies have been struggling to stay in the global competition. Referring to the present scenario of the global market, a research firm TrendForce forecasted that global smartphone production would be decreased by 12% in the first quarter to a five-year low for the current fiscal year.
Samsung, whose production of smartphones are likely to be reduced by 3% for the current year, has introduced some innovative smartphone models to stay competitive against the world’s largest smartphone provider, Apple.
Samsung’s latest model, Galaxy Z Flip, which has a square-shaped and folded phone, is likely to pose a big competitor against Apple’s devices. As analysts and sources claimed that the new device would be cheaper than the Galaxy Fold which costs $1,980 that could be opened like a book that has a more compact screen size.
On the introduction of the new device, the South Korean company believed that the device would attract several customers as it could address technological challenges and screen glitches that forced the company to delay the launching of Galaxy Fold last year. Researcher Counterpoint said Samsung would soon launch three variants of Galaxy S premium smartphones and expect a large sale volume of these phones mainly because of competitive pricing and powerful cameras.
Folding Phones to Challenge Apple
Samsung reduced to the second rank smartphone producer as Apple took over the top position in the December quarter as Apple’s cheaper iPhone 11 helped to achieve its best growth performance since 2015. The Tuesday launch event of folding phones was aimed at fighting Apple’s cheap phones and was also the first public debut of Samsung’s new mobile chief Roh Tae-moon who previously oversaw the company’s outsourcing of cheap phones to Chinese contract manufacturers.
An analyst at Strategy Analytics, Neil Mawston explained, “Foldables are expensive and very hard to manufacture. It will take time for foldable to become mass-market products.” Mawston believed that a mass-market of the folding phones would be taking off by 2022 or 2023 and said, “For now, foldable is a super-premium product that can drive profits or a ‘halo effect’ for the Samsung brand.”
Nevertheless, some analysts predicted that the limited productivity would constraint Samsung’s ability to boost the foldable phone production sharply. The industry officials and analysts expected that Samsung could sell only 5 million units at maximum this year which would be less than 2% of Samsung’s total smartphone shipments in 2019.
Meanwhile, analysts explained that the South Korean firm was the one that has been least affected among major producers because of China’s coronavirus outbreak. Analysts said, while the virus outbreak has made the global supply chain restraint and affected smartphone production, Samsung could take advantage of this as its main manufacturing facility is based in Vietnam.
I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.
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