TAIPEI / SEOUL – Samsung Electronics is committed to high-end smartphones, with plans to significantly increase productivity and a new, dual-mode model under development, Nikkei Asia has learned.
Samsung has previously announced that it will be teaming up the introduction of a new version of one of its flagship flagship phones, the Note, this year, while CEO Koh Dong-jin said that the company hopes to increase their flexible phone production despite ongoing global chip shortages.
The South Korean tech giant plans to release the new generations of their Galaxy Z Flip and Galaxy Z Fold phones this year, sources said, and is also working on a possible dual-core phone. published as early as the end of this year, according to three sources. Samsung has filed many patents for two-sided design.
Samsung has also set an ambitious internal goal to increase their overall smartphone addresses at the same level as those in the much-loved Galaxy Note series, going over 10 million units per year, one person with direct experience told Nikkei. However, that target will be determined by the market situation and the condition of the chip and the component crust, the person added.
Industry sources and analysts say the focus on folded phones is aimed at differentiating what it has to offer as well as taking advantage of the fat edges on such devices.
“The ban of the Note series was largely decided last year. The company wants to promise more on folded phones that have much higher prices with a special design,” said one of the acquaintances. on the case.
Another familiar with Samsung’s plan said the company “has long struggled to differentiate its two flagship phone series, the Galaxy S and Note, which are often on the position for the first half of the year and the second half, respectively. … The company is considering using folding phones as a key variant and hopes to replace its Note series in some ways. “
Samsung declined a Nikkei Asia request to comment for this story.
If the target for foldable loads is reached, the higher retail price of these phones means that Samsung would likely have better revenue performance. The Galaxy Z Fold 2 5G launched last year had a retail price of $ 1,999, but the starting price of $ Galaxy Note is $ 2099.
An unprecedented global shortage of chips and components, however, could hamper South Korea’s ambitious company plans, several sources said.
CEO Koh Dong-jin, who heads Samsung’s mobile division, addressed the issue at the company’s annual general meeting on Wednesday.
“We are doing our best to increase the production of flexible smartphones. … For the foldable phones, the display is the most important. We solved many problems. [in securing display supplies], although we still can’t make as many folded phones as other smartphones. “
Samsung has acknowledged that the global chip supply crisis could be difficult for the company for the April-June period but said it is making further efforts to address the issue. The company did not cite the chip shortage as a reason for its decision not to introduce a new Galaxy Note phone this year, which will typically compete with the new iPhone series. in the second half of the year. Chip supply issues have already hit manufacturers, business computers and consumer electronics.
Details about the dual-core phone are still being finalized, three sources familiar with the case said, but it is expected to be a more app-friendly design.
“The design is set so that the screen aspect ratio is undeveloped according to the mainstream ratio of 16: 9 or 18: 9, so more video games and other apps could run smoother with better solutions on the machine, “one commented.
The Galaxy Z Flip and Galaxy Z Fold have one hinge. Unopened, the Fold 2 has a screen ratio of 25: 9, which means that app developers have to specifically design their products to match the particular aspect ratio.
The South Korean company was still ranked as the world’s largest smartphone maker in 2020, with 266.7 million handsets sold, but shipments fell by nearly 10%, while its main competitor, Apple, saw a 7.9% rise, data from research firm IDC showed.
Jeff Pu, an analyst with GF Securities, told Nikkei Asia that Samsung has long planned to replace the Note series with folding devices.
“It’s a good move. … Smartphones are already looking too similar. Betting on folded phones also means higher retail prices,” Pu said. “Samsung still has the edge over all of its competitors, as it manufactures these screens themselves and has invested in researching and developing such technology for a long time.”
According to Pu estimates and supply chain analyzes, Samsung shipped some 3.5 million folding smartphones last year, and it is “very likely” that it could double that number to 7.5 million units this year.