Samsung aims to catch up to Chinese rivals for thin foldable phones as Apple said to enter the fray

Samsung plans to unveil a thinner foldable smartphone next month to compete with Chinese rivals like Honor and Oppo, who have gained market share with slimmer designs; the new Galaxy Z series aims to address the critical issue of thinness in foldables, as current Samsung models are thicker than competitors. Despite these advances, the foldable market remains small, accounting for only 2% of the overall smartphone market this year, though Apple is expected to enter the foldable market next year with a folding iPhone.

Analysis

Samsung is strategically preparing to unveil a thinner version of its flagship foldable smartphone next month, a direct response to intense competition from Chinese manufacturers, notably Honor and Oppo, who have set industry benchmarks with slimmer and lighter devices. Current comparisons highlight this pressure: Samsung's Galaxy Z Fold6 measures 12.1mm thick and weighs 239 grams, whereas Oppo's Find N5 is 8.93mm/229g and Honor's Magic V3 is 9.2mm/226g. Samsung's forthcoming Galaxy Z series is touted in a company blog post as its "thinnest, lightest and most advanced foldable yet," signaling an effort to reclaim design leadership. However, the competitive landscape remains dynamic, with Honor planning its Magic V5 foldable launch on July 2. Despite these technological advancements aimed at improving device appeal, the foldable market remains a small segment, projected by CCS Insight to constitute only 2% of the overall smartphone market this year. While enhanced thinness may attract consumer attention, analysts like Ben Wood of CCS Insight caution that consumers still question the fundamental need for a folding device. Further shaping the market's future, TF International Securities analyst Ming-Chi Kuo reported that Apple, a notable absentee in this category, plans to launch a folding iPhone next year, which could significantly alter market dynamics. The overall sentiment surrounding these developments is mixed and cautious, reflecting both the innovation drive and the persistent challenges in achieving mainstream foldable adoption.

Key Decisions for Investors

• Investors should closely monitor the launch and initial market reception of Samsung's new, thinner foldable, as its success in closing the design gap with Chinese rivals is crucial for maintaining competitiveness in this high-stakes, niche market.
• Given the foldable market's current small share (2% of total smartphones) and lingering consumer uncertainty regarding their utility, expectations for rapid, broad market growth should be tempered, although Apple's potential entry next year, as reported by Ming-Chi Kuo, could serve as a significant market catalyst or disruptor.
• For those tracking Apple (AAPL), the prospect of a foldable iPhone launch next year represents a potential new growth vector and a major competitive development for the premium smartphone segment; further confirmations and strategic details should be watched.
• The intense focus on device thinness by Samsung and its competitors underscores a key differentiating factor in the foldable segment; assess the tangible design improvements in Samsung's new models relative to offerings from Honor and Oppo, as this will likely influence near-term market share shifts.