Samsung’s Foldable Phones Are Hungry for a Bite of Apple

Samsung showed off three new folding smartphones yesterday: the Galaxy Z Fold, which closes lengthwise like a book, and two versions (one’s cheaper) of the Galaxy Z Flip 7, which snap closed crosswise with all the drama of a 2000s-era Razr. 

The phones are thinner, lighter and have bigger screens than their predecessors. And like every device these days, they’re crammed with AI features — like an editing tool that removes photobombers and an AI assistant that can critique your outfit. (Does this make our newsletter look big?)

Samsung could use the sales boost from a blockbuster product or three. The Korean tech giant this week forecast its second-quarter profit will plummet 56% as sales of its AI chips struggle under US restrictions on China.

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Samsung’s new phones hit shelves later this month, days after Chinese rival Honor launched its new folding phone. Huawei and Oppo, also China-based rivals, both debuted new folding phones in February. Samsung’s share of the foldables market slipped nine points last year to 45%, Counterpoint Research found.

Apple has left the foldables market, which is mainly driven by China, on read:

• Bloomberg reported Apple will launch a folding phone next year, but the company hasn’t confirmed any such plans publicly — come to think of it, plans in general aren’t super clear as its C-suite faces significant changes.
• Apple on Tuesday announced the departure of Jeff Williams, its COO, who was seen as a possible successor to 64-year-old CEO Tim Cook. Calls for Cook to step down have grown louder as Apple has struggled to impress customers with the AI capabilities of its devices. Analysts at LightShed Partners said, “Apple now needs a product-focused CEO” that won’t miss the AI boat. 

Losing Battery: Shopping for a new phone used to be a lot more exciting. But in the iPhone era, smartphones became one-note. Over time, iPhones became the subject of memes as new models got progressively bigger but offered few new features. The result: Americans don’t feel as incentivized to upgrade. People are keeping their old phones for longer on average (about three years), according to Statista, even as companies continue to churn out new models every year. Though foldable phones only make up a sliver of smartphone sales today, they could offer bored customers an alternative that chips away at Apple’s sales. In the first quarter, 8% of US customers who bought a foldable phone switched from an iPhone, CNN reported.