Customer reluctance to purchase
Samsung Galaxy: Folding cell phones remain slow sellers
12/26/2024 – 11:23 a.mReading time: 3 min.
Samsung has missed sales targets for its new foldable smartphones – even in traditional markets like South Korea. Now the company wants to take countermeasures.
Samsung was hoping for increasing sales figures with the new generation of its foldable smartphones, the Galaxy Z Fold 6 and Flip 6. But expectations were clearly missed. Sales are stagnating worldwide, and even in South Korea, a traditionally strong market for Samsung, sales figures are declining. Why is this and how does Samsung want to counteract it?
With the foldable smartphones Galaxy Z Fold 6 and Flip 6, Samsung wants to revolutionize the smartphone experience for its customers. The devices offer large displays that can be folded to provide plenty of space for multitasking or entertainment. New AI functions such as automatic image editing or real-time translation are intended to make use even more convenient.
But this is exactly where the problem lies: For many buyers, these innovations are apparently not enough to justify the high prices of up to 2,000 euros for the Z Fold 6, for example. The device has become lighter and thinner compared to its predecessor, and the displays have been further optimized. But the general weaknesses of foldables – such as a sensitive fold or the limited usability of the front display – remain.
Another reason for the poor sales figures is the growing competition. Other manufacturers such as Google, Oppo and OnePlus have successfully entered the foldable market, which was once dominated by Samsung, and offer foldable smartphones, some of which are better tailored to the needs of users. They also rely on more sophisticated designs or attractive prices and thus appeal to more potential buyers.
In addition, the so-called foldables continue to have a difficult time outside of Asia. In Europe and North America, demand for these devices remains low as many customers primarily use their smartphones for basic functions such as telephony, messaging or simple apps. Conventional smartphones, which are significantly cheaper, are sufficient for these purposes.
The South Korean company is responding to weak demand with discount campaigns. In the US, customers can currently save up to 60 percent when purchasing a Samsung foldable phone. There are also special offers in Germany, for example as part of exchange programs.
Samsung is also adjusting its production targets. According to media reports, production of Galaxy Z foldables will be reduced by around 40 percent by 2025. Instead, the company plans to increase the production numbers of its Galaxy S models. Production of the Galaxy S25 series is expected to increase by around 7 percent to 37.4 million units. With these models, Samsung is targeting the masses as they are offered at more affordable prices.
The poor sales figures for Galaxy foldables show that Samsung is currently having to assert itself in a difficult market. Due to the tense global economic situation, consumers are holding back on buying new smartphones. In addition, users are keeping their cell phones longer and longer before buying a new device.
As the competition catches up, the question remains whether Samsung will continue to push the foldable trend or move to a more profitable segment. At the moment it seems as if the manufacturer has to rethink its strategy: cheaper prices, clearer product advantages and improved everyday use could be the decisive keys to getting foldables out of their niche.