Samsung Unveils New Slimmer Foldable Phones Amidst Competitive Challenges

Samsung Electronics has unveiled its latest foldable smartphones, the Galaxy Z Flip 7 and Galaxy Z Fold 7, at an event held in New York on July 10, 2025. This launch marks a critical moment for the South Korean tech giant as it grapples with increasing competition from Chinese manufacturers and attempts to reclaim its position in the premium smartphone market, which it lost to Apple in 2023. The new models are designed to be thinner and lighter, with the Galaxy Z Fold 7 being 26% thinner and 10% lighter than its predecessor, the Fold 6.

Choi Won-joon, Samsung's mobile president and chief operating officer, emphasized the company's commitment to leading the AI-powered smartphone market. Choi stated, "I believe that foldable phones, integrated with AI features, are ready to become mainstream by offering unique, differentiated experiences." This statement reflects Samsung's strategy to differentiate itself from Apple, which has relied on in-house AI technology that has encountered delays in feature implementation.

The current smartphone landscape is increasingly competitive, with Samsung facing formidable rivals such as Huawei and Honor, who are gaining traction in the foldable segment. According to a report by Canalys, Samsung's foldable smartphones account for 4% of its total phone sales, but this figure represents 16% of its sales priced over $800. Despite these numbers, the overall market for foldable phones remains niche, with IDC reporting that they constitute just 1.5% of total smartphone sales.

Samsung's pricing strategy reflects its premium market focus; the Galaxy Z Fold 7 is priced at $1,999, a 5% increase from the previous model, while the more affordable Galaxy Z Flip 7 FE is offered at $899. Analysts have noted that while the new models address previous concerns about the bulkiness of foldable phones, the high price point and limited use cases may hinder broader market adoption.

The company's future in the foldable market may also be influenced by its decisions regarding manufacturing and supply chain management. Samsung produces a significant portion of its smartphones in Vietnam and has been proactive in addressing challenges posed by U.S. tariffs and China's export restrictions on rare earth materials. Choi mentioned that Samsung is diversifying its supplier base to mitigate risks associated with these geopolitical factors.

Looking forward, Choi indicated that Samsung is working on developing tri-foldable phones, although details on release timelines remain scarce. As Samsung continues to push its foldable technology, it faces the challenge of demonstrating clear value to consumers to ensure that this innovative form factor does not remain a mere novelty in the competitive smartphone arena.

In summary, Samsung's latest foldable phone release represents a significant moment not only for the company's product strategy but also for its efforts to reclaim market leadership in an increasingly challenging environment. As the company navigates these complexities, its ability to innovate and adapt may determine its success in the premium smartphone segment in the coming years.