Samsung unfolds its next biggest thing
● Samsung’s new foldable smartphone will have one of the biggest price tags seen on a smartphone in SA — just under R50,000 — but the company is banking on selling every handset it brings into the country.
The Galaxy Z Fold2, launched at a virtual media event streamed online from Johannesburg this week, is Samsung’s third generation of foldable phone, and is likely to position the company as leader in the format. In folded mode, it is a smartphone with a fairly large 6.2-inch screen. It opens up into a 7.6inch inside screen — similar in size to mini tablet computers.
The original Z Fold, launched last year, proved a major disappointment due to design flaws and had to be re-engineered and relaunched. It was followed in February this year by the lifestyleoriented Z Flip, designed to look like a makeup compact case rather than a smartphone.
The Fold2 is seen as a bold move up the value curve, appealing to the upper reaches of the high-end consumer segment. Justin Hume, director of integrated mobility at Samsung SA, says the relatively low sales of the original Fold were an early indicator of demand.
“Because the Galaxy Z Fold was new technology, we brought only 200-300 units per month,” he told Business Times. “We also brought limited quantities of Galaxy Z Flip, which sold out on release. However, we saw a clear demand for the category and were able to rapidly scale production.
“With the Galaxy Z Fold2, we will also be able to scale production to meet the high global demand we anticipate. We are expecting to get five times more supply monthly to meet the demand.”
That suggests more than 1,000 units a month — or R50m in monthly sales — for the Fold2. At a time of economic decline, this appears highly optimistic. However, Hume sees a clear target market for the device.
“The Galaxy Z Fold2 transcends a smartphone and tablet. It’s not a replacement of one category but the introduction of a new one. From what we have seen, the Foldables category is here to stay but not replace other categories. It appeals to industry leaders who love the design-centric approach.”
The large screen can run three apps side by side, making it one of the most effective phone displays yet for multitasking. This suggests a big productivity play from Samsung, much as the Note series has for the past eight years. However, Hume plays down the comparison. “While the Galaxy Fold2 has several Galaxy Note20 features, it is a media-centric device and is focused more on design and flexibility. It’s made for the entrepreneurs and innovators.”
A key advantage over Huawei is it will continue to run on the Android operating system, with access to the Google Play Store. That will be absent from future Huawei alternatives because of US sanctions.