Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Samsung to possibly unveil new foldable phone in Korea instead of US
Samsung Electronics' Galaxy S23 smartphone is introduced at the Unpacked event in San Francisco, Feb. 1. Courtesy of Samsung Electronics
By Baek Byung-yeul
By Baek Byung-yeul
Samsung Electronics is expected to hold its latest foldable smartphone unveiling event in Korea, which has previously been held in major U.S. cities. The Galaxy maker is also likely to unveil new devices at the end of July, a few weeks ahead of its typical August unveiling schedule, as the dominant foldable phone maker recognizes that competition is rising in the market, according to industry sources, Sunday.
Previously, Samsung has held events under the title “Unpacked” to unveil new devices in New York or San Francisco. However, sources said the company is now considering holding the event in Seoul, on July 26.
In regard to the speculation, a Samsung spokesman said, “When and where the next-generation foldable phones will be unveiled is yet to be determined.”
However, the industry view is that by hosting the event in Seoul or another Korean city, Samsung would be sending a clear message that it is the dominant player in the foldable phone sector at a time when Google and Chinese smartphone makers are rushing to launch their foldable phones.
At this year's Unpacked event, Samsung is set to unveil the latest Galaxy Z Fold5, a device as big as a tablet when unfolded and the size of a smartphone when folded, and the Galaxy Z Flip5, a clamshell-style foldable phone, which has garnered huge popularity based on its sleek design and convenient pocket-friendly size when folded.
The company could also strengthen its outreach to smartphone markets in Southeast Asia and India by tying the Unpacked event to Korean pop culture, which has momentum in the Asian market. Given Samsung has lost its market penetration in China, the company desperately needs to raise dominance in the rest of Asia.
While the company suffered an earnings shock in the first quarter due to sluggish chip demand, Samsung needs its mobile division to launch new devices faster than usual to consolidate its earnings.
Global smartphone shipments reached 1.2 billion last year, according to Counterpoint Research. This was down 12 percent from 2021 and the lowest level since 2013. The decline is likely due to better average device performance and longer replacement cycles for consumers due to global inflation.
However, industry analysts see that foldable smartphones could become a driving force to revitalize the depressed smartphone market because many think foldable phones are the latest innovation in the sector in terms of both hardware and software.
Counterpoint Research said 4.7 million foldable smartphones have been sold in the U.S. as of 2022. Also, its recent survey showed that 28 percent of current smartphone users in the U.S. are highly likely to prefer a foldable smartphone as their next purchase and Samsung is the most preferred brand for foldable purchases for 46 percent of the respondents.
Toby Zhu, an analyst at Canalys also said the smartphone industry is expecting that foldable phones will play a positive role in revitalizing the depressed market.
“It is still too early to predict the recovery of overall consumer demand,” the analyst commented. “However, the sell-in volume of the global smartphone market is expected to improve due to the reduction in inventories in the next few quarters. In addition, vendors have focused more on innovations and raising production and channel efficiencies after a round of fluctuations, shifting from growing for volumes and shares to growing for quality. 5G popularization and foldable phones are also becoming the new driving forces in the industry.”