Samsung's Foldable Gambit: Sustaining Leadership in a Shifting Market

Samsung’s dominance in the foldable smartphone market is under siege. While the company retains a 35.4% global market share in Q2 2025, its lead over Huawei (34.2%) has narrowed significantly compared to 2024 [5]. This tightening race underscores the urgency of Samsung’s next-generation strategy, which hinges on balancing innovation, pricing, and consumer adoption. For investors, the question is whether Samsung can maintain its edge in a segment where rivals are closing the gap and affordability remains a barrier.

Samsung’s latest foldables, the Galaxy Z Fold7 and Flip7, represent a bold reimagining of the category. The Fold7’s 4.2mm thickness and 215g weight mark a 30% reduction in bulk compared to prior models, addressing a key consumer pain point [2]. Meanwhile, the Flip7’s 4.1-inch FlexWindow and 6.9-inch main display cater to users seeking portability without sacrificing productivity. Both devices integrate AI tools like Gemini and the Now Bar, enabling tasks such as real-time document editing and hands-free collaboration [4]. These advancements are critical for positioning foldables as premium workstations rather than novelty gadgets.

However, innovation alone isn’t enough. Samsung’s pricing strategy is a double-edged sword. While the flagship models remain above $1,500, the company has introduced the Galaxy Z Flip7 FE at $899 to broaden accessibility [3]. This mid-tier offering targets price-sensitive consumers and could drive volume sales, though it risks diluting the brand’s premium image. Analysts note that foldables still account for just 1.5% of global smartphone sales in 2025, with high prices and limited use cases acting as barriers [3].

Consumer adoption hinges on Samsung’s ability to demonstrate value. The company has leveraged viral social media campaigns, such as bending tests exceeding 200,000 cycles, to build trust in durability [3]. Additionally, AI-driven multitasking features—like side-by-side app usage on the Fold7—position these devices as tools for productivity, not just status symbols. Yet, the market remains fragmented. Xiaomi’s 5.1% share in 2025 [5] and Huawei’s aggressive R&D investments signal that Samsung’s leadership is far from guaranteed.

The looming threat of Apple’s rumored $1,999 foldable in 2026 adds another layer of complexity [6]. While Samsung’s current focus on AI partnerships and ecosystem expansion (e.g., app optimization for foldables) is prudent, it must accelerate adoption now to stay ahead. This includes expanding carrier partnerships and demonstrating tangible use cases for businesses and creatives.

For investors, Samsung’s strategy is a high-stakes bet. The company’s ability to innovate while scaling affordability will determine whether foldables evolve from niche products to mainstream essentials. With the market projected to slow in 2025 (-2% YoY) [3], Samsung’s next moves will be pivotal in shaping the future of mobile computing.

Source:
[1] Galaxy Z Fold7 and Flip7 Design Story [https://news.samsung.com/global/design-story-the-next-chapter-in-innovation-galaxy-z-fold7-and-galaxy-z-flip7]
[2] Samsung Galaxy Z Fold7 Vs Z Flip7 2025 [https://www.forbes.com/sites/forbes-personal-shopper/2025/07/09/samsung-galaxy-z-fold-7-vs-z-flip-7/]
[3] 2025 Samsung Folding Phones Trend [https://www.accio.com/business/latest-samsung-folding-mobile-phones-trend]
[4] 7 Reasons to Switch to Galaxy Z Flip7 [https://insights.samsung.com/2025/08/12/7-reasons-to-switch-to-galaxy-z-flip7-for-next-level-business-productivity/]
[5] Samsung to Stay #1 in Foldables [https://www.gsmarena.com/forecast_samsung_to_stay_1_in_foldables_but_its_lead_over_huawei_will_shrink_significantly-news-68717.php]
[6] Flip Phones Reigniting Smartphone Wars [https://www.businessinsider.com/samsung-bet-on-flip-phones-gains-momentum-against-apple-2025-8]