Samsung’s bet on the future of smartphones is something Apple doesn’t have an answer to yet

On Wednesday, Samsung showcased its latest innovation in the smartphone arena by unveiling three new foldable devices. The Galaxy Z Fold 7, priced at $2,000, the Galaxy Z Flip 7 at $1,100, and the Galaxy Z Flip 7 FE at $900 are set to launch on July 25, with preorders starting on July 9. This release comes as Samsung anticipates heightened competition from Android manufacturers and the potential debut of Apple's first foldable iPhone. Samsung's new foldable offerings are strategically designed to challenge Apple's dominance in the premium smartphone segment. Although speculation regarding a foldable iPhone has circulated for years, Apple has yet to launch such a device or provide any concrete indications of future plans. For over six years, Samsung has been pioneering the foldable smartphone market, promoting phones that can function as both tablets and portable devices. This strategy aims to reawaken consumer interest as traditional smartphones have plateaued in innovation, offering little motivation for upgrades. Despite Samsung's status as a market leader, the foldable segment remains niche, comprising less than 2% of the overall smartphone market, according to estimates from the International Data Corporation and Counterpoint Research. Price points continue to be a significant barrier to attracting new users. Projections suggest that foldable phone shipments will reach 45.7 million units by 2028, a stark contrast to the anticipated 1.2 billion smartphones shipped in 2024. Samsung's COO of mobile experience, Won-joon Choi, expressed optimism about the new foldables, stating that they are nearing a pivotal moment for mainstream adoption. The Galaxy Z Fold 7 is notably lighter than the Galaxy S25 Ultra and features an upgraded 8-inch internal display compared to its predecessor's 7.6 inches. Additionally, the Galaxy Z Flip 7 boasts a larger 4.1-inch external screen and a slightly expanded 6.9-inch internal display, enhancing the user experience. Choi emphasized the long-term commitment to developing these devices, which involves new components and materials. The updated phones will have different processors; the Galaxy Z Fold 7 will utilize a Qualcomm chip, while the Z Flip 7 will be powered by Samsung's Exynos chip. In a notable first, Samsung is also introducing a more affordable version of its flip phone, the Galaxy Z Flip 7 FE, which features a familiar design and an older processor. Despite the anticipated decrease in foldable phone prices, analysts like Francisco Jeronimo from IDC suggest that manufacturers are finding profitable margins in this segment, even with lower sales volumes. High-end devices like the Galaxy Z Fold 7 are now positioned to attract consumers who might typically consider an iPhone 16 Pro Max. Notably, data from Consumer Intelligence Research Partners reveals that 8% of U.S. consumers who purchased a foldable phone in the last quarter switched from an iPhone, reflecting growing interest in Samsung's offerings. In anticipation of Apple's potential entry into the foldable market, Choi remarked that Samsung would welcome the competition. Since launching its first foldable phone in 2019, Samsung has maintained a leading role in the sector, despite stiff competition from brands like Huawei and Vivo, particularly in the Chinese market. As other companies release innovative foldable devices, including Huawei's accordion-style model, Samsung is focused on hardware advancements and AI integration to set its products apart. Samsung is collaborating with Google to enhance its AI assistant, Gemini, for use on its unique screens, enabling features like Gemini Live on the Z Flip 7's cover display. Looking ahead, Choi envisions a future where smartphones leverage AI agents for various tasks, streamlining user experiences beyond traditional app navigation. While the timeline for these advancements remains uncertain, Choi is confident that significant changes are on the horizon.