Key Points:
- Samsung’s foldable market share has plummeted from a dominant position to second place behind Huawei.
- Despite a booming foldable market, Samsung’s sales growth target for the Galaxy Z Fold 6 and Flip 6 is a modest 10%.
- The company acknowledges a need to attract new buyers beyond existing foldable users.
Samsung, once the undisputed leader in the foldable phone space, is facing a significant challenge. While the foldable market itself is experiencing exciting growth, Samsung’s grip on that market is rapidly loosening. This article delves into the company’s current struggles and its plans to regain its footing.
Recent reports indicate that Samsung is aiming for a mere 10% increase in sales for its latest foldable offerings, the Galaxy Z Fold 6 and Flip 6. This relatively modest target paints a contrasting picture compared to the overall growth trajectory of the foldable segment.
Part of the reason behind this cautious outlook seems to be Samsung’s struggle to attract new customers. While exact figures for the Fold/Flip 5 generation remain elusive, estimates suggest Samsung shipped around 10 million foldable units in 2023, likely including both the Fold/Flip 4 and 5 iterations. However, a more concerning trend emerges when we look at market share. In May 2024, reports indicated a dramatic drop for Samsung, with its share falling from a commanding 58% to a precarious 23%, placing it firmly behind Huawei.
Samsung seems acutely aware of this issue. During a recent media briefing, the company acknowledged that a majority of its foldable sales come from existing foldable users upgrading to newer models. This suggests a struggle to entice those who haven’t yet experienced the benefits of foldables. To address this, Samsung is implementing strategies that target new demographics.
Investing in retail experiences and actively combating durability concerns through their “Galaxy Z Assurance” program are examples of these efforts. By creating a more immersive and reassuring shopping experience for potential buyers, Samsung hopes to bridge the gap and reignite interest in its foldable phones.
The foldable market holds immense potential, and Samsung’s pioneering role within this segment is undeniable. However, the competitive landscape is evolving rapidly. Whether Samsung’s current strategies will be sufficient to reclaim its dominant position remains to be seen. Only time will tell if the Galaxy Z Fold 6 and Flip 6 can entice a broader audience and propel Samsung back to the forefront of the foldable revolution.
