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The Galaxy Z Fold3 and Galaxy Z Flip3 (provided by Samsung Electronics)

Will Samsung Electronics succeed in its strategy of abandoning its Note and turning foldable phones into the “next big thing”?

The company is getting the jump on the foldable smartphone with the unveiling of the new Galaxy Z Fold3 and Galaxy Z Flip3, which officially go on the market on Aug. 27.

After announcing its Galaxy S21 series in January, Samsung decided not to launch a Galaxy Note — its usual flagship model for the second half of the year — to focus instead on this year’s foldable phone lineup.

The Galaxy Z Fold3 and Galaxy Z Flip3, revealed at an online “Samsung Galaxy Unpacked 2021” event on Wednesday evening, are third-generation versions of the foldable phone models first released by Samsung Electronics in 2019.

The event was the first unveiling to take place since the decision to parole Samsung Electronics Vice Chairman Lee Jae-yong.

The Z Fold3 is the first foldable phone to support the S Pen, an emblematic feature of the Galaxy Note. The full-screen capability has been perfected with the inclusion of an Under-Display Camera, where the camera opening has been done away by concealing the camera underneath the screen.

The Z Flip3, which has been drawing attention as a fashion item, has a substantially larger cover display (screen), which has been increased from 1.1 to 1.19 inches.

Samsung Electronics’ strategy is intended to hold on to the number one spot for market share through popularization of foldable phones with exteriors that go beyond existing smartphones.

This is also the reason it set the prices around 10–30% lower than previous phones, despite the lightweight and added features. The costs for a 256GB phone in the US amount to US$1,799.99 for the Z Fold3 and US$1,049.99 for the Z Flip3.

While Samsung Electronics has recently held on to its top rating for global smartphone market share, it is facing intense pressure from both ends: Apple’s brand power on the premium side, and the “more bang for the buck” strategy of Chinese competitors like Xiaomi on the lower end.

Figures released by the global market research firm Counterpoint Research showed Samsung Electronics with a global market share of 18% for the second quarter of this year — a narrow two percentage points ahead of the 16% share for second-ranked Xiaomi.

Within the premium smartphone market, foldable models are expected to enjoy the fastest growth over the next decade. Another market research organization, Strategy Analytics, released figures in May predicting that foldable phone sales would rise from the 2.2 million-unit range worldwide last year to the 6.5 million-unit range this year and 13 million-unit range next year.

Apple appears poised to enter the foldable market by around 2023. Samsung hopes that an early position in that market can give it the edge in its competition with Apple.

Samsung’s wager on foldable market growth is also evident in its marketing strategy. A promotional event providing a discount on new models for customers returning their old devices applies to up to two devices, including tablets and wearables as well as smartphones.

By Sun Dam-eun, staff reporter

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