Samsung Unveils New Foldable Phones Amidst Intensifying Competition

[SEOUL] Samsung Electronics has officially launched its latest foldable smartphone models, the Galaxy Z Fold 7 and the Galaxy Z Flip 7 FE, on July 9, 2025, during an event in New York. These new devices are designed to be thinner and lighter, as the company seeks to maintain its foothold in the premium smartphone market, particularly against fierce competition from Chinese manufacturers such as Huawei and Honor. The Galaxy Z Fold 7 is priced at $1,999, reflecting a 5% increase from its predecessor, the Galaxy Z Fold 6, while the Z Flip 7 FE is positioned at a more accessible $899.

The introduction of these smartphones comes at a crucial time for Samsung, which lost its status as the world's leading smartphone manufacturer to Apple in 2023. The company has been grappling with slowing demand and rising competition, particularly in the foldable segment, which still accounts for just 1.5% of the global smartphone market, according to research firm IDC.

Samsung's mobile president and chief operating officer, Choi Won Joon, emphasized the company's commitment to innovation in AI-powered devices. In an interview with Reuters, he asserted, "I believe that foldable phones, integrated with AI features, are ready to become mainstream by offering unique, differentiated experiences." He outlined Samsung's strategy to collaborate with external partners like Google to enhance its AI capabilities, setting it apart from Apple, which relies more on in-house technology that has faced delays in implementation.

Amidst these advancements, Samsung is also addressing challenges posed by U.S. tariffs and supply chain issues impacting its semiconductor business, particularly in AI chip production. This multifaceted approach includes diversifying its supplier base in response to export restrictions from China on rare earth elements, which are crucial for smartphone manufacturing.

Analysts view the new models as a significant leap forward in addressing longstanding criticisms of foldable phones, particularly regarding their bulkiness and usability. The Galaxy Z Fold 7 is reported to be 10% lighter and 26% thinner than its predecessor. However, experts remain cautious; they predict that high price points and limited use cases may restrict foldable phones to a niche market. Canalys forecasts that Samsung's foldable device shipments, which peaked in 2022, will remain stable or see slight declines through 2025, reflecting broader market trends.

With Samsung's foldable smartphones comprising approximately 4% of its total phone sales but 16% of its sales in the premium segment (priced over $800), the company faces mounting pressure from rivals, particularly in the Chinese market. Acknowledging this, Choi stated that Samsung will primarily focus its marketing efforts on the United States, Europe, and South Korea.

Looking forward, Samsung is reportedly exploring the development of tri-foldable phones, though a launch timeline has yet to be disclosed. As the company navigates a landscape fraught with competitive pressures and technological challenges, its ability to innovate and adapt will be essential for reclaiming its position in the global smartphone hierarchy.

In conclusion, while Samsung's latest foldable models represent a strategic move to enhance its market presence, the company must address ongoing challenges in pricing, usability, and competition to ensure their success in an increasingly crowded marketplace.