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Home Market dynamics

Samsung hopes to increase the penetration of foldable phones in the high-end flagship market and enhance visibility through contextual experiences.

Author: Mash Yang
2023-08-04
in Market dynamics, 手機, Life, observe
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After the new foldable screen phones Galaxy Z Fold5 and Galaxy Z Flip5 were officially opened for pre-order in Taiwan, Chen Qimeng, general manager of Samsung Taiwan's Mobile Communications Division, said that overall pre-orders grew by 1.7 times. In particular, in the pre-order performance of Samsung's own online store, the pre-order volume of Galaxy Z Flip5 reached twice that of the previous generation model in the first hour.

Samsung hopes to increase the penetration of foldable phones in the high-end flagship market and enhance visibility through contextual experiences.
▲The new foldable screen phones Galaxy Z Fold5 and Galaxy Z Flip5 are now available for pre-order in Taiwan

There will still be layouts for high-end flagship, mid-range and entry-level models

Chen Qimeng stated that although overall sales in the Taiwanese market declined in the first half of the year, with sales revenue decreasing by approximately 4.2%, Samsung's sales of high-end flagship phones bucked the trend and also saw growth in low-end phones. This is essentially the same as the current polarized growth curve in the Taiwanese mobile phone market, indicating that consumers are more inclined to buy high-end flagship phones or choose more affordable entry-level models.

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However, Chen Qimeng emphasized that the company will not adjust its existing product introduction strategy due to this. Samsung will still have separate layouts for high-end flagship, mid-range, and entry-level models. Adjustments will indeed be made in response to market changes, but it is expected that the company will gradually focus on the development of high-end flagship models, meaning that products priced above US$600 may account for more than 40%, thereby echoing the distribution ratio of the Taiwanese mobile phone market (currently Samsung's high-end flagship phone sales account for 30%, and its main focus is still on mid-range and entry-level models).

Samsung hopes to increase the penetration of foldable phones in the high-end flagship market and enhance visibility through contextual experiences.
▲Galaxy Z Fold5

New products will continue to be launched in the second half of the year

In response to the surge in overseas travel following the lifting of the epidemic lockdown, Chen Qimeng expects that consumer behavior will change in the second half of the year. In addition, with clearer developments in mergers between different telecom operators in Taiwan, telecom operators are expected to increase their investment in subsidies for contract-based phone purchases at the end of the year, thus potentially triggering a new wave of phone replacements.

However, regarding the decline in popularity of tablets and wearable devices due to the lifting of lockdown measures, Chen Qimeng believes that this is actually due to a change in usage demand. Consumers will be more inclined to purchase high-end flagship tablets or wearable devices that can deeply measure body data. Therefore, it is expected that the newly launched flagship tablets Galaxy Tab S9 series and Galaxy Watch6 series will have sales growth opportunities.

In addition, Chen Qimeng also revealed that there will be new phones introduced to the Taiwanese market in the second half of the year. Although he did not disclose specific details, it is possible that the new phone will be the one that Justin Hume, Samsung's vice president of mobile communications in South Africa, has recently confirmed.Galaxy S23FE, as well as the Galaxy SmartTag2 series of positioning devices that were recently exposed in certification documents.

Samsung hopes to increase the penetration of foldable phones in the high-end flagship market and enhance visibility through contextual experiences.
▲Galaxy Z Flip5

Foldable phones will expand local collaboration and promote through contextual experiences.

至於針對接下來的發展規劃,陳啟蒙強調在2025年以前完成三個「3」的目標,包含讓螢幕可凹折手機產品在高階旗艦機種市場滲透率達30% (目前介於13%-15%之間),並且讓三星自有官方通路銷售量達所有通路佔比的30%,以及定價在600美元以上機種的銷售市佔從目前的20%增加至30%。

Regarding the sales strategy for the foldable screen phone, the company will expand local collaborations and collaborate with more brands, including New Balance, for promotion. Furthermore, it will strengthen consumer memory through contextual experiences, making the foldable screen phone a more accessible and practical product for consumers' daily lives.

Samsung hopes to increase the penetration of foldable phones in the high-end flagship market and enhance visibility through contextual experiences.
▲Create different personal styles through personalized accessories

Internal discussion on the criteria for screen-based insurance issuance

Regarding consumer concerns about the durability of phones with concave screens, Chen Qimeng explained that the new models feature a new hinge design to enhance durability. They also include support for the manufacturer's screen warranty, or the option to expand the warranty coverage by purchasing Samsung Care+. Regarding the previously controversial manufacturer warranty certification standards, Chen Qimeng stated that internal discussions are underway, with the goal of improving the subsequent warranty service.

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Chen Qimeng stated that the future development direction includes continuing to enhance the differentiation of Samsung Mall's operations. For example, the newly launched Galaxy Z Fold5 Starry Gray and Galaxy Z Flip5 Ice Blue colors are only available for pre-order through Samsung Mall, or continuing to introduce more differentiated products and products that are sufficient to attract consumers in the long term. In addition, there are plans to bring the characteristics and services of the South Korean flagship store to the Taiwanese market, so that consumers can have a better experience in Samsung channels, and plans to increase the current 70 channel stores in Taiwan to 2025 by 120.

Samsung hopes to increase the penetration of foldable phones in the high-end flagship market and enhance visibility through contextual experiences.
▲The trial program allows more people to experience the foldable screen phone more easily.
This is an advertisement.
Tags: foldable phoneGalaxyGalaxy z flip5Galaxy z fold5With Galaxy三星折疊手機Foldable mobile phone
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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