Samsung is banking on a 10% increase in sales of its latest foldable devices, despite Motorola now being seen as a credible competitor with its new Razr 100 Ultra and strikes threatening the company’s AI production.
The big difference is that Samsung has a host of new AI capabilities that the company says will boost sales.
Retailers that lost 3G replacement business to operators that had access to databases of consumers still using 3G smartphones as the network is about to be shut down in Australia are banking on the premium end of the smartphone market to continue growing.
According to Samsung’s mobile division president TM Roh, the South Korean company expects a 10% increase in sales of the new Galaxy Fold and Flip 6 competitors.
He claims that the two phones’ new “user-friendly” features, cameras, battery life, chipset and AI will deliver “better results in global markets,” he said.
The launch follows a decline in smartphone sales over the past 18 months.
IDC says the global foldable phone market will reach 25 million devices in 2024, a 37.6% increase from 18.1 million units shipped in 2023.
Total global foldable product shipments will reach 45.7 million units by 2028, driving a CAGR of 20.3% during 2023-2028.
Samsung has dominated the foldable smartphone market since its inception, but recently lost the crown to Chinese brand Huawei, whose smartphones are not sold in Australia due to safety concerns.
As for competition, Roh says it’s a good thing for consumers if the market becomes more competitive, as it has this year.
What’s unclear is what impact the strikes will have on Samsung’s smartphone production, with the company’s largest union now calling on workers at one of the company’s most advanced AI memory chip factories to walk off the job.
Last week, several hundred workers took part in protests outside Samsung’s high-speed memory plant in Pyeongtaek, south of Seoul, after the union called a general strike for this week.
Union leaders say they are now targeting a small but strategically important complex in hopes of increasing pressure on Samsung for better wages.
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