Foldable Phones Facing a Chill? Samsung Galaxy Z Series Shipments May Decline, Can AI Save the Smartphone Market?

Foldable Phones Facing a Chill? Samsung Galaxy Z Series Shipments May Decline, Can AI Save the Smartphone Market?Recently, the highly anticipated Samsung Galaxy Z Fold6 and Galaxy Z Flip6 foldable phones, despite featuring Galaxy AI, have encountered a lukewarm reception in the pre-order phase. According to prominent analysts, pre-orders for these devices have declined by 10% compared to last year

Foldable Phones Facing a Chill? Samsung Galaxy Z Series Shipments May Decline, Can AI Save the Smartphone Market?

Recently, the highly anticipated Samsung Galaxy Z Fold6 and Galaxy Z Flip6 foldable phones, despite featuring Galaxy AI, have encountered a lukewarm reception in the pre-order phase. According to prominent analysts, pre-orders for these devices have declined by 10% compared to last year. Samsung's total foldable phone shipments for 2024 are projected to fall between 8-9 million units, marking a decrease from the previous year.

Meanwhile, the Samsung S24 series initially witnessed strong demand after its release, but the momentum has slowed down since April. Analysts predict that the upcoming S25 series shipments will remain at par with the 2024 S24 series, suggesting that Samsung's flagship phone sales growth may have hit a ceiling.

Despite smartphone brands heavily promoting AI services as a key selling point, it remains unclear whether device-based AI can sustain consumer upgrades. While Google and Samsung have been diligently optimizing their on-device AI services, there's no definitive evidence to indicate that these improvements will reignite consumer demand for upgrades.

Analysts highlight that Android foldable phones, including those from Samsung and Chinese brands, are experiencing shipments below expectations. Moreover, the user experience of foldable phones has not significantly improved, potentially limiting their growth prospects in the near term.

Market participants generally express optimism about a dramatic increase in smartphone and PC shipments driven by on-device AI. However, if the Apple iPhone 16 series, slated for release in the second half of 2024, fails to exceed expectations in terms of shipments due to AppleIntelligence, this optimistic outlook could be revised, potentially leading to downward pressure on related stocks in the short term.

Overall, while AI technology is rapidly evolving within the smartphone industry, its ability to truly drive smartphone market growth remains questionable. Consumer attitudes and real-world experiences with new technologies will shape the future of the smartphone market.