Blown away by innovation or price? Samsung's foldable phone up for debate

Samsung wowed the smartphone industry with the first mainstream foldable screen, accompanied by a nearly $2,000 price tag.

Samsung Electronics Co Ltd has wowed the smartphone industry with the first mainstream foldable screen, accompanied by a nearly $2,000 price tag that generated heated debate as to whether it may prove too expensive to revive slumping sales.

The South Korean tech giant unveiled the Galaxy Fold which resembles a conventional smartphone, but which opens like a book to reveal a second display the size of a small tablet at 18.5 cm (7.3 inches). It will go on sale on April 26.

(Business Standard)

At its launch event in San Francisco on Wednesday, Samsung upped the surprise factor by briefing analysts and journalists on widely anticipated aspects ahead of time, such as 5G versions of its existing top-end Galaxy S phones.

The unveiling of the foldable device came as a shock to many in the auditorium.

"I am blown away," said Patrick Moorhead of Moor Insights & Strategy, adding the phone could help Samsung rejuvenate its mobile business, whose lead is under attack from China's Huawei Technologies Co Ltd.

"I believe you can innovate your way out of a mature market," he said, noting that when Apple Inc launched the iPhone in 2007, most industry watchers believed the market had matured for $100 "candy bar" phones without touch screens.

Bob O'Donnell of TECHanalysis Research said the work Samsung had done with Facebook Inc, Alphabet Inc's Google and Microsoft Corp to adapt applications to the new screen was important.

He said though Samsung had teased the folding phone before, "to see it in action, to see the software – I was like, Wow.

It's hugely important that the software experience be good." The phone, which can operate three apps simultaneously and boasts six cameras, also challenges the notion of what a phone can cost, debuting at nearly twice the price of current top-of-the-line models from Apple and Samsung itself.

"Due to price, it's likely to be sold mainly to early adopters. Prices are key to expanding sales," said former Samsung mobile executive Kim Yong-serk, who is now a professor at Sungkyunkwan University in Korea.

"It will help Samsung burnish an image as an innovative company, but it is unlikely to be profitable. I expect Apple to wait say for one year and come up with foldable phones with more features, as they did with the smartwatch," he said.

Better than iPhone? Samsung Galaxy Note 9 creates flutters in Apple camp

Samsung led the smartphone market by volume in the second quarter, shipping 71.6 million units while Apple shipped 41.3 million iPhones.

Samsung, that maintained a comfortable lead in the second quarter this year with 20.9 per cent global market share, has now created flutters in Apple's camp with unveiling its flagship Galaxy Note 9.

According to industry analysts, Note 9 can build a robust road-map for Samsung at a time when the premium segment globally is reporting flat or lower sales amid Chinese players offering flagship devices at a much lower price point in price-sensitive markets like India.

The 6.4-inch Note 9, launched on Thursday, comes with a mammoth 1TB memory, a bigger battery and a Bluetooth-equipped S Pen which is unique to Note devices.

ALSO READ: Samsung's gaming-friendly Galaxy Note 9 unveiled, India launch this month

"The customers in the premium category are split between Android users (who usually prefer Samsung over any other brand) and the iOS users. Both the customers are distinct and usually like sticking to their choices," Upasana Joshi, Associate Research Manager, Client Devices, IDC India, told IANS.

Note 8 was a hit model last year -- post the debacle which Galaxy Note 7 created within the consumer mindset.

"Considering the overall feature to price bundling, Note 9 is an upgrade to the previous Galaxy Note 8 series but one will have to wait to see the demand generated from the Indian market," Joshi noted.

Samsung led the smartphone market by volume in the second quarter, shipping 71.6 million units while Apple shipped 41.3 million iPhones.

"With Apple soon coming with new launches, with three new model line-up, it will certainly change the market dynamics very soon.

"One thing is sure that Note 9 has removed the aspect of a 64GB entry variant in the premium segment. Let's see what Apple has to offer in the coming days," said Joshi.

The story is no different in India where Samsung bounced back in the second quarter with 29 per cent market share, toppling its Chinese rival Xiaomi which garnered a close 28 per cent, says Hong Kong-based Counterpoint Research.

Apple had a mere 1 per cent market share during the quarter -- its lowest in recent history -- owing to changes in its distribution strategy and domestic assembling not picking up pace.



Article Source BS