Healthy Sales Expected
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
Compared with the Galaxy Fold, SEC’s innovative Galaxy Z Fold 2 features a larger front display and thinner bezels. Contrary to market concerns, we expect the Galaxy Z Fold 2 to generate healthy sales, given that: 1) it boasts outstanding functionality, despite its high price; and 2) it has no competitors.
Galaxy Z Fold 2 unveiled: A more polished offering
On Sep 1, Samsung Electronics (SEC) unveiled the Galaxy Z Fold 2 in an online event. A sequel to SEC’s first foldable smartphone, the Galaxy Fold, the new model compensates for many of the previous offering’s shortcomings in an overall more-polished package. While the high price point is somewhat disappointing, we expect demand to come in solid, given the product’s differentiated functionality.
The Galaxy Z Fold 2 is scheduled for release on Sep 18 at a price of US$1,999 (W2.4mn), similar to that of the previous model. Notable changes to the device include: 1) enlarged front and main displays (6.2 and 7.6 inches, respectively, versus the previous 4.6 and 7.3 inches); and 2) minimized bezels (including removal of the main screen’s camera notch), creating a greater sense of immersion when the phone is unfolded. Additional hardware features include a 12MP triple-lens camera setup on the back, a 10MP front-facing camera, and 12GB of DRAM and 256GB of NAND memory. Battery capacity stands at 4,500mAh, a slight increase from the previous model.
Strong sales expected, contrary to market concerns
In the market, investors appear skeptical towards sales of the Galaxy Z Fold 2, seeing few significant changes compared to the previous model and a relatively lofty price tag. Just as with the Galaxy Fold, however, we believe that actual sales will prove better than expected. Although its price is high, the handset boasts outstanding functionality compared to existing smartphones, and there are currently no competing products on the market.
Among domestic parts makers, we recommend taking note of KH Vatec (hinges), Segyung Hitech (protective film), Fine Technix (metal plate), BH Flex (RF-PCB), and Innox AMC (process materials).