What They Say
Nikkei reported that Samsung wants to boost the sales level of its folding smartphones to around the level of its Note series of smartphones at over 10 million handsets per year. It is reported to be developing a double-folding model that might be available at the end end of this year.
Nikkei quoted an industry contact as saying:
Samsung has)… “(.long struggled to differentiate its two premium phone series, the Galaxy S and Note, which are often set for the first half of the year and the second half, respectively. … The company is thinking to use foldable phones as a key differentiator and hopefully to replace its Note series in some ways.”
Nikkei quoted an analyst, Jeffery Pu of GF Securities as saying that according to his estimate and supply chain checks, Samsung shipped some 3.5 million foldable smartphones last year, and it is “very likely” that it could double that total to 7.5 million units this year.
Separately, the Korea Herald said that LG Electronics is still undecided about the future of its smartphone business. (LG Mulls Exit from Smartphone Market) The paper reports that the firm has been in discussions with Vingroup of Vietnam and Volkswagen of Germany, but had made no progress towards a sale of the business. The report suggests, quoting analysts, that this could mean a closure for the division.
There is a board meeting of LG Electronics next month when the decision may be taken. The paper quoted sales of 24.7 million handsets in 2020, down 13% from 2019 and with a share of just 2%.
What We Think
It makes complete sense for Samsung to make the most of restricted chip supply to try to boost its folded smartphone sales, where it has a very dominant share and is generating the most additional revenue for every set of chips used. However, it will have to be able to make enough of the displays it needs to do so. Xiaomi posted the video below of a double fold prototype on Weibo, but we would expect any Samsung device to be in-folding. (BR)
