Poised to Launch New Foldable Smartphones
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
Samsung Electronics is expected to unveil its new foldable smartphone series at the Galaxy Unpack event slated for Aug 11. Moving ahead, we expect the firm to focus on expanding its flagship smartphone sales via strong promotional/marketing efforts aimed at its foldable lineup. Related parts makers are anticipated to benefit.
SEC poised to launch new foldable smartphones
Samsung Electronics (SEC) is anticipated to unveil its new foldable smartphones, the Galaxy Z Fold 3 and Galaxy Z Flip 3, at the Galaxy Unpack event slated for Aug 11, with sales to start in earnest from mid/late August. Of note, we expect only SEC’s foldable smartphone lineup to be released, not the Galaxy Note series, which was the flagship product of 2H20.
As for hardware specifications, in the case of the Galaxy Z Fold 3, it is predicted that a full edge-to-edge screen will be realized via the application of under-display camera (UDC) technology, in which the front camera is mounted beneath the display. In both models, the display is to be slightly enlarged compared to previous models, but thickness and weight are to be reduced, resulting in an enhanced user experience.
Sales prospects strong for foldable smartphones, backed by robust promotional/marketing strategies
We believe that sales of SEC’s new Galaxy Z lineup will surpass market expectations, given that the firm will likely focus its promotional/marketing capabilities on the new foldable smartphone lineup to make up for the sluggish sales of its existing flagship offerings, the Galaxy S and Galaxy Note series.
Of note, SEC’s new foldable lineup is to be launched at a 20% discount versus last year’s models. Going forward, the company should enjoy strong flagship phone sales expansion, helped by the offering of a trade-in promotion giving discounts on new products when returning old products, which will allow users to return up to two devices, including smartphones, tablets, and wearables.
Smartphone sales expansion at SEC should benefit not only traditional plays such as KH Vatech, Fine Technics, Innox Advanced Materials, and BH, but also related parts makers.