Samsung Electronics remains on top in the global smartphone market. As talking about the percentage ratio then Samsung’s share was 21% which is leading Apple that has 19%. Although, the scene is somewhat different if you look at the premium phone market that comes at a selling price of more than $400. Also, the market research firm Counterpoint research, that reveals the fact, the premium phone market share of the second quarter was 59% for Apple while Samsung sits at 19% depicting a huge gap.
The gap is primarily because of the difference in ASP (average selling price). As Samsung’s ASP is only 40% compared to those Apple’s.
Now to overcome the gap Samsung comes with a new tool to compete with Apple in the premium phone market the Foldable phone. That proves to be a differentiating form factor. And all these results enable Samsung to set the production of new foldable phones next year at 10.4 million units, which is 6% higher than this year.
Moving ahead, exclusive orders were also placed on partner companies to strengthen the development of technology. The same to reduce the weight and thickness. Because these two are pointed out as the main disadvantage of foldable phones. Also, this implementation was a part of the strategy before Apple entered the foldable market in earnest.
Additionally, Samsung Electronics speculated that- “The foldable market will grow at a CAGR of 80% by 2025, and Apple expects to enter the foldable market in 2024 with tablets or laptops instead of smartphones.” While they also believe that the Foldable market will be going to bloom if Apple enters the market. For Samsung foldable is a sort of escape.
Foldable improvement task ‘special order’ is also issued to partner companies
The tasks that include in order to enhance the foldable range further includes the following:
- Reducing thickness and weight and strengthening the durability
- Improving screen wrinkles and built-in S Pen
- Improving camera performance below Galaxy S-class
- Solving heat dissipation problems due to mobile phone separation (up, down, left, and right).
- Specifically, the company requested that the 6.3mm Z Fold 4 be thinner, strengthen the vibration motor vibration force, and find ways to reduce weight with lighter materials.
Is it possible to close the premium phone gap with Apple?
However, it is quite unclear now how effective the assumed strategy going will be. Also, as per market research firm Omdia, the ASP of Samsung Galaxy in the second quarter was $383. Compared to Apple iPhone ASP then it is $959, and that’s $576 higher. While the ASP gap between the two companies going to widen from $457 in Q2 2020 and $564 in Q2 2021 to $576 in Q2 of this year.
On the other hand, Industry insiders say that “Apple’s foldable IT product launch time is expected to be 2025 at the earliest,” and “If Apple enters the foldable market in 2025, Samsung Electronics should secure a competitive advantage in the foldable market in the next 2~3 years with enhanced hardware as well as software.”
