Samsung Electronics is expected to introduce a new foldable phone with lower prices this year. It is analyzed that Samsung Electronics, which recently lowered the shipping price of major products and increased cost-effectiveness by strengthening the low-end line-up, will enter the full-fledged price competition. It is also read as a step toward securing the leading position in the foldable phone market.
Ross Young, CEO of DSCC, a global display market research company, said in a report released on the 8th (local time), “Samsung Electronics will release at least three foldable phones this year.” It is expected.” The clamshell, meaning’clamshell’, is a design applied by Samsung Electronics to the’Galaxy Z Flip’, a smartphone that folds horizontally.
Galaxy Z Flip 5G with clamshell design (Photo = Samsung Electronics)
Foldable phones have been attracting attention as a next-generation smartphone form factor for several years, but their high price point has been pointed out as a disadvantage. The factory price of the foldable phone’Galaxy Z Fold 2’released by Samsung Electronics in August 2020 is 2398,000 won. The factory price of the bar-type premium smartphone’Galaxy S20 Ultra’, which was introduced in the same year, is 1.59 million won, and the price of the foldable model is about 30% higher despite the same flagship. The factory price of the clamshell foldable phone’Galaxy Z Flip 5G’ was also set at 1.65 million won, higher than the S20 Ultra. This is a price that could feel burdensome to consumers who were accustomed to premium smartphones around 1 million won at the time.
However, Samsung Electronics is changing its strategy this year. The factory price of major smartphone lineups is lowered and the entry-level lineup is also reinforcing. It seems to be a move to win the top spot in the smartphone market, which has become somewhat anxious. According to the market research firm Counterpoint Research, in 2020, Samsung Electronics maintained the No. 1 position with 19% of global smartphone market share, surpassing 15% of Apple, but its market share fell below 20% in 10 years. In addition, the fact that Apple’s iPhone 12 series sales, which were released last winter, continued unpredictably until recently, which is a point of crisis for Samsung Electronics.
Samsung Electronics lowered the factory price of the’Galaxy S21′ series that was released earlier than expected in January. The basic model price of the Galaxy S21 is 999,900 won, which is about 20% lower than the basic model shipment price of the previous Galaxy S20 at 12,48,500 won. The price of the plus model and the ultra model was set lower than the previous one. The price cut soon led to a rebound in sales. According to the market research firm Atlas Research & Consulting on the 5th, the domestic sales of the Galaxy S 21 series in the last four weeks were about 590,000 units, which rebounded to a level close to the 620,000 units recorded by the Galaxy S8 four years ago.
The Galaxy S21 series achieved high sales in the first month through a price cut policy (Photo = Samsung Electronics (
If this price policy is maintained, it is expected that the price of the Clamshell foldable phone’s entry-level model will be formed in the early 1 million won range. Some specifications such as screen size, processor, and memory are likely to be adjusted. In addition, Samsung Electronics lowered the factory price of Galaxy Z Flip 5G to 1,347,000 won on the 5th ahead of the launch of a new foldable smartphone this year.
Samsung Electronics is currently implementing a more aggressive pricing policy in the’Galaxy A’series, which is responsible for the waist of the smartphone lineup. Samsung Electronics is planning to release the 400,000 won 5G smartphone’Galaxy A42 5G’ on the 12th. This is the lowest price among 5G smartphones in Korea. The Galaxy A32 is also expected to be released this month. The price is expected to be around 300,000 won, and both models are expected to be equipped with a 6.4 inch or larger large screen, large-capacity battery, and a quad camera at the price of 300,000 to 400,000 won.
Samsung Electronics knows that Galaxy A’s premium strategy works in the market. According to Counter Pointer Research, the Galaxy A31 is the most popular smartphone in the country in 2020. This product was also well received as a low-cost model equipped with convenient functions such as a 5000mAh high-capacity battery and Samsung Pay, equipped with a quad camera capable of taking close-ups at the factory price of 300,000 won.
Galaxy A42 5G model to be released at 12:00 (Photo = Samsung Electronics)
Lee Yun-jung, an analyst at Counterpoint Research, said, “The Galaxy A series played a big role in the background that Samsung Electronics maintained a solid performance under various adverse conditions.” And Apple’s position is expected to strengthen this year.”
The’Galaxy Note Discontinuation’, which has recently risen in the industry, is also presented as a basis for Samsung Electronics to diversify its foldable phone lineup and implement aggressive pricing policies. For the past several years, Samsung Electronics has maintained a dual strategy of launching’Galaxy S’in the first half and’Galaxy Note’ in the second half. However, the distinction points of the Galaxy Note are getting lighter due to the recent enlargement of the smartphone display, the emergence of foldable phones, and support for the Galaxy S series S Pen. Accordingly, in the industry, the prospect that Samsung Electronics will choose the foldable phone Galaxy Z as the new premium partner of the Galaxy S is dominant instead of the Note series.
Furthermore, Samsung Electronics is a company that has already succeeded in preoccupying the foldable phone market. In terms of’hardening’, the possibility of releasing an entry-level foldable phone together cannot be excluded. According to DSCC, the global foldable phone sales volume in 2020 was 2.2 million units, an increase of about 1000% compared to the previous year, and Samsung Electronics had an overwhelming market share of 87%. The most sold product during the same period is the clamshell foldable phone’Galaxy Z Flip’, which recorded 50% of the market share.
Meanwhile, Apple, which is considered a strong competitor to Samsung Electronics, has not officially disclosed its plan to launch a foldable phone. However, market research firm Omdia predicted on the 12th that Apple could release the first foldable iPhone in 2023. It means that it is entering the foldable phone market about 2-3 years later than Samsung Electronics.