Chinese foldable phone vendors challenge Samsung

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 08:45

Companies

Chinese foldable phone vendors challenge Samsung

Posted : 2021-12-24 16:53

Updated : 2021-12-25 09:17

Huawei's P50 Pocket foldable phone, launched Dec. 23 / Screenshot from Huawei's YouTube channel

By Kim Bo-eun

Huawei unveiled its first foldable smartphone, Thursday, as one of the many Chinese smartphone vendors seeking to challenge Samsung Electronics' foldable models.

Samsung in the past had reigned as the only smartphone manufacturer offering foldable models, since the launch of its Galaxy Z Fold in 2019. But Chinese brands such as Xiaomi, Oppo and Huawei have caught up quickly, launching their own models this year.

Smartphone makers are increasingly experimenting with new forms, as they seek to keep their mobile phone businesses profitable amid a saturated global market.

Huawei's P50 Pocket is the first model to resemble Samsung's clamshell Galaxy Flip phone. The model is thinner than Samsung's, but is a 4G device that is priced higher than the Z Flip 3.

The standard P50 Pocket with 8 gigabits of RAM and 256 gigabits of storage retails for $1,410. The launch price of Samsung's Galaxy Z Flip 3 with the same specification in September was $999.99.

Huawei's latest foldable phone is now available for purchase in China. The company has yet to launch the model in overseas markets, but has confirmed its plans to do so.

"Huawei's plans to introduce the model in overseas markets will be unveiled at the World Mobile Congress in Barcelona in February next year," an official said.

Huawei's P50 Pocket model is set to compete with Samsung's Galaxy G Flip 3, once it makes its debut in overseas markets in the coming months.

Meanwhile, Oppo on Dec. 15 introduced its foldable phone, the Find N. Citing testing lab TUV, Oppo says Find N's crease between the two screens is "up to 80 percent less noticeable" compared to other foldable models.

As Chinese vendors step up their game in the new foldable phone category, Samsung is set to lose its share of the niche market gradually. Market tracker Counterpoint Research forecasts that Samsung's share of the global market for foldable phones will fall to 74 percent from this year's 85 percent.

The agency also forecast that the size of the foldable phone market will expand next year to 16.9 million handsets, from 8.9 million this year. At the same time, foldable devices are set to account for 16.9 percent of the market for smartphones next year, up from 8.9 percent this year.

Samsung is set to ship its foldable phones accordingly. The No. 1 smartphone vendor is aiming to ship at least 13 million foldable devices next year, which is about double its shipments this year.

At the same time, Samsung is expected to increase its engagement with China's smartphone market, where it has virtually no presence due to the dominance of local brands.

Samsung accounts for less than 1 percent of China's mobile phone market. The Korean company set up a team recently to focus on its China business, as part of efforts to improve its market presence there.

Revenue generated from the market in China accounts for 30 percent of Samsung's total sales, but its chip and display businesses have driven most of its earnings in the world's No. 2 economy.

bkim@koreatimes.co.kr