[Seoul = Kotaro Hosokawa] Samsung Electronics of South Korea diversifies the design of smartphone terminals. While suspending the sale of the flagship model "Galaxy Note", we introduced two folding models. A new type of rollable display will also be developed. As China's Xiaomi (Xiaomi) is growing rapidly, it will compete with a new model with a renewed design using its own technology.
Samsung announced on the 8th that its consolidated operating profit for the July-September quarter of 2021 was 15.8 trillion won (about 1.48 trillion yen), up 28% year-on-year. Sales increased by 9% year-on-year to KRW 73 trillion, setting a new quarterly record. Although the performance by division is not disclosed, according to Yushin Investment Securities, the semiconductor division was the driving force behind the increase in sales and profits.
Among the various divisions, the smartphone division performed better than the forecast. Samsung has announced flagship models twice a year, the "Galaxy S Series" in early spring and the "Galaxy Note Series" in the summer. Regarding the notebook series (screen size 6.7 inches and 6.9 inches), it was difficult to appeal the difference with the large screen S series, so the release was suspended in 2021. Attention was focused on the impact on business performance in the July-September quarter.
The two models of the folding smartphone "Galaxy Z Fold 3" and "Galaxy Z Flip 3" released at the same time in August made up for the absence of the notebook.
"It's getting a lot of attention, especially from women in their 20s and 30s." Samsung announced on the 6th that the combined sales of both models in South Korea reached 1 million units. The total sales of the two models surpassed 1 million units in just over a month after launch, which is the third highest level among Samsung's many models.
The screen size when unfolded is 7.6 inches and 6.7 inches, respectively, and it seems that it was evaluated that it can be smaller than the screen size when folded.
At the time of the product announcement, President Roh Tae-moon, the top of the smartphone division, announced the "popularization of folding smartphones", and the flip 3 sold less than $ 1,000 (about 110,000 yen), which is 28% cheaper than the previous model. set the price. Seven colors are available for fashion-conscious consumers.
Flip 3 is also popular in the European and American markets, and SK Securities expects to ship 8 million units worldwide by the end of the year. Although it only accounts for a small percentage of Samsung's annual smartphone shipments (250 million units), President Roh is enthusiastic, saying, "We will open up a new category of smartphones with the Z series, which is a collection of innovative technologies."
Hong Kong research firm Counterpoint estimates that foldable smartphone sales will triple this year to 9 million units. DSCC, a US research firm, predicts that the market will reach 66 million units in 2025, 6.4 times the forecast for 2021, assuming that Apple Inc. will enter the foldable market.
Samsung, which is also the world leader in smartphone displays, is also preparing “next to folding”. This summer, it was revealed that the company had applied for a trademark registration for the "Galaxy Z Roll" in South Korea, Europe, and the United States. It is thought to refer to a roll-up telescopic display, and it will drastically change the standard smartphone design based on display technology.
In the background of finding a way out of redesigning smartphones, there is a fierce pursuit of Chinese forces. Huawei has stalled due to U.S. restrictions, but the likes of Xiaomi and OPPO are gaining market share in China, India and emerging markets. In June, Xiaomi surpassed Samsung for the first time in terms of monthly counterpoint market share, becoming the world leader.
Furthermore, in terms of earnings, Apple, which specializes in high-end models, is far behind. In contrast to Apple, which surrounds consumers with its handsets, operating system (OS), and apps, there is a sense of crisis that Samsung will not be able to pull ahead of the Chinese competitors that are closing in on it unless it continues to make its handsets more attractive.
Foldable smartphones require the technical ability to bend the display itself. Samsung's research and development capabilities, such as processing technology for ultra-thin glass that can be bent nearly 180 degrees and highly durable luminescent materials, will come into play.
Chinese companies such as Xiaomi and Huawei have also released foldable models, but "(due to the difference in technology) the rate of non-defective products is low, and it will take time to turn a profit," said a securities analyst.
Samsung also handles semiconductors and displays on its own. Even as competitors struggle to source semiconductors, the impact is relatively small. We will prepare for competition with rivals by linking our high technological capabilities and procurement capabilities to the innovation of final products.
In order to accelerate the spread of foldable phones in the future, the key is to expand the number of apps that take advantage of the shape of the device. The application of the online conference system "Zoom" automatically switches the screen layout so that it is easy to make a video call when the smartphone screen is raised 90 degrees. However, such applications are still limited.
Samsung is working with Google and Microsoft to develop foldable and easy-to-use apps. In the future, it will be a condition for the folding type to take root in the smartphone market that the functions and operability that make use of the characteristics of the terminal will be enhanced in SNS (exchange site) and games, which have many users.