Samsung Refuses to Launch a Cheaper Galaxy Z Fold, Sticks to High-End Route, but Can it Withstand the Challenge from Chinese Manufacturers?

Samsung Refuses to Launch a Cheaper Galaxy Z Fold, Sticks to High-End Route, but Can it Withstand the Challenge from Chinese Manufacturers? Samsung's recently released Galaxy Z Fold6 Special Edition, despite its limited release in Korea and China, has sparked heated discussions online with its upgraded 200-megapixel main camera, minimized display crease, and a more stylish design. Though it lacks S-Pen support, its price remains high

Samsung Refuses to Launch a Cheaper Galaxy Z Fold, Sticks to High-End Route, but Can it Withstand the Challenge from Chinese Manufacturers?

Samsung's recently released Galaxy Z Fold6 Special Edition, despite its limited release in Korea and China, has sparked heated discussions online with its upgraded 200-megapixel main camera, minimized display crease, and a more stylish design. Though it lacks S-Pen support, its price remains high.

Following the launch of the new foldable, Samsung confirmed to Korean publication SisaJournal that it has no plans to launch a cheaper Galaxy Z Fold smartphone. Samsung stated, "Rather than viewing [the Galaxy Z Fold Special Edition] as a high-end product, it's more accurate to say it's a product released to expand your options. Users can choose based on their taste. As of now, we have no plans to release a lower-priced version."

Samsung has been consistently raising its smartphone prices, reaching new heights. This year, with the launch of the Galaxy Z Fold6, Samsung breached the $2000 price point. This hefty price tag is widely considered an obstacle to product adoption. The recently launched Galaxy Z Fold6 Special Edition (512GB) is roughly $300 cheaper than the global Galaxy Z Fold6 (512GB).

However, Samsung's move faces intense competition from Chinese manufacturers. Chinese foldable device manufacturers like Xiaomi, Huawei, OPPO, and Honor are progressively gaining market share by emphasizing value for money. Compared to Samsung's foldable offerings, Chinese OEMs' foldable devices offer not only better value but also lighter and thinner designs.

A report by Counterpoint Research revealed that Huawei holds the top spot in the global foldable phone market with a 35% share, followed by Samsung at 23% and Xiaomi at 12%, illustrating Samsung's squeezed position amidst Chinese competitors.

Samsung's adherence to a high-end route by refusing to release a cheaper foldable will be an interesting observation point. Whether it can withstand the challenge from Chinese manufacturers and maintain its high-end market position will be Samsung's biggest test moving forward.

Samsung has always been known for its premium flagship phones, and the Galaxy Z Fold series is a critical part of its high-end strategy. Samsung believes that its premium products can attract high-end users and maintain its competitiveness in the market. They believe that by offering a wider range of choices, users can select products that best fit their needs and budget.

However, the rise of Chinese manufacturers is challenging Samsung's strategy. Chinese manufacturers are demonstrating formidable strength in the foldable phone sector. By offering lower costs, thinner designs, and more competitive pricing, they are attracting more and more consumers.

Whether Samsung can maintain its leading position in the fierce market competition depends on its ability to find a balance. On one hand, it needs to maintain the competitive edge of its premium products to attract high-end users. On the other hand, it needs to consider the demands of the mid-to-low-end markets and launch more value-for-money products to expand its market share.

Ultimately, Samsung's success hinges on whether it can meet consumer needs and adapt to the ever-changing market environment.