Pricing Disappoints
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
Samsung Electronics has unveiled the Galaxy Z Fold 4 and Z Flip 4 at its Galaxy Unpack event. The phones are thinner, lighter, and have improved cameras over previous generations. While certain models have seen price increases, the strong sales trend should continue.
Galaxy Z Fold 4 and Z Flip 4 unveiled
Samsung Electronics (SEC) unveiled the Galaxy Z Fold 4 and Galaxy Z Flip 4 at its Aug 10 Galaxy Unpack event. Pre-orders will start on Aug 16 in Korea and Aug 26 in overseas markets. The phones are thinner and lighter and have improved camera and battery specifications, but price hikes for certain model are disappointing.
In terms of hardware, the biggest change compared to previous models is the thinner and lighter design made possible by upgraded hinge technology. In addition, in the case of the Z Flip 4, the battery is about 12% larger, while the Galaxy Z Fold 4 is equipped with a 50MP camera, featuring a 3x optical zoom.
Price increase for Flip 4 is disappointing
The main negative factor is a W100,000 price increase for the Z Flip 4 256GB model—the Fold 4 is priced similar to its predecessor. Given the marginal changes in overall hardware specification and design, price reductions seem essential for the popularization of foldable smartphones.
That said, SEC, which has been losing market share to Apple in the high-end smartphone segment, is likely to build on its competitive edge in the foldable smartphone segment by seeking to expand sales through aggressive marketing and promotions.
Related beneficiaries include KH Vatech (hinge maker), Fine Technics (metal plate maker), Sekyung Hi-tech (special protective film maker), Innox Advanced Materials (OLED and digitizer materials), and BH Flex (display FPCBs).