Samsung in crisis seeks to overcome head-on with form factor innovation and expansion of AI ecosystem > News

What Samsung Electronics has made the core of its strategy for the second half of the year is the diversification of its foldable phone lineup. In addition to the existing Z Fold and Z Flip, the newly added 'Wide Fold' model is expected to provide a tablet-like usage experience by adopting a passport-shaped design that is wider than the existing product. What is most noteworthy is the improvement in the quality of the display. The Wide Fold uses Ultrathin Glass (UTG) with a thickness of 60μm, which is more than 30% thicker than the existing model, which dramatically improves the screen wrinkle problem and further enhances durability against external shocks. This is a result that reflects Samsung's will to go beyond simply expanding the product line and resolve the durability issue, which has been pointed out as a chronic weakness of foldable phones, through technological advancement. In addition, Samsung's careful calculations to solidify its influence in the premium market by using a lineup strategy differentiated from the existing Z Fold series to meet market expectations for the new form factor are visible.

Along with changes in hardware, upgrading the software and AI ecosystem is also a key strategy for Samsung. Samsung is significantly strengthening AI-based personalized services in the digital healthcare field, starting with the Galaxy Watch 9. From tracking vital signs to heart health scores and measuring daily aerobic load, features that proactively identify changes in a user's body prove its value as a platform that goes beyond simple device connectivity and manages the user's daily life. At the same time, the latest AI features applied to Galaxy smartphones are quickly spreading to existing models through updates, maintaining consistent user experience. In particular, practical functions such as 'priority notification' and 'file summary' suggest that AI is no longer a technology of the distant future, but has become an essential tool that directly improves users' work efficiency. This strategy can be interpreted as Samsung's core strategy to increase customer loyalty through software differentiation amidst upward standardization of hardware performance.

However, behind these innovations, realistic challenges such as rising costs and market polarization also coexist. As the price of mobile memory such as DRAM and NAND flash has recently soared and the proportion of product production costs has increased rapidly, price increases for new products are inevitable. Samsung is focusing more on the premium market to offset this cost pressure, but slowing demand for low-end product lines and fierce price competition with Chinese companies are still a major burden. Moreover, as there is a possibility that some older models will be excluded from support for the latest software updates, there are concerns about technological alienation among existing users. In a difficult market environment where a decline in product sales is expected, Samsung is seeking a company-wide breakthrough by defending its profitability through a high price policy and installing premium features, while also strengthening its competitiveness in the semiconductor sector, including the supply of HBM4, which technically supports next-generation AI accelerators.

The key points to watch in the market are Apple's actions and Samsung's response. Apple's strategy of focusing only on AI innovation and refraining from mentioning hardware at WWDC can paradoxically be interpreted as a signal that the blooming of the foldable market is imminent. Samsung seems to be aware of Apple's launch of the foldable iPhone, and is accelerating the release date by quickly completing the certification of the Galaxy Z Flip 8, which is equipped with the latest technologies such as support for NB-NTN, a satellite communication technology. We are also focusing on expanding the brand experience beyond simple device sales through marketing activities that stimulate consumers' emotions, such as gourmet benefits linked to telecommunication companies and Pokemon card events. This multifaceted approach demonstrates Samsung Electronics' strong confidence in going beyond hardware performance competition to catch all three birds: service, marketing, and technical reliability. Now that competitors are silent, this is a decisive opportunity for Samsung to solidify its market dominance.