2024 will go down in the history which marked the rise of useful AI features and the debut of the triple-folding smartphone. Despite such innovations, the smartphone market declines, with Samsung taking a significant hit. Though still the global leader in foldables, Samsung saw its market share drop by 21% in Q3 2024 compared to Q3 2023. If a new report from Korea is anything to go by, Samsung may cut back foldable production in 2025.
Samsung will reportedly cut down on foldable production in 2025
According to Korean publication ETNews, Samsung is planning changes to its mobile production strategy in 2025. While the company intends to boost Galaxy S series shipments, it will scale back production of its foldable devices.
The Galaxy Z7 series, set to launch later this year, has significantly lower production targets — 3 million units for the Z Flip 7 and 2 million for the Z Fold 7 — compared to the Galaxy Z6 series’ goal of 8.2 million units. This amounts to Samsung reducing over 3 million foldable units in 2025 compared to 2024, the publication reported, citing “industry sources.”
This shift likely stems from the Z6 series falling short of expectations. In Korea, where foldable phones enjoy the most popularity, pre-sales for the Galaxy Z Fold Flip 6 reached only 910,000 units, a noticeable decline from 1.02 million the previous year. Consequently, Samsung’s MX division saw a 16.3% drop in third-quarter profits.
The smartphone market has yet to recover from the pandemic
The publication adds that the market and demand have yet to recover from the impact of COVID-19. This means sales haven’t returned to pre-pandemic levels (2019 and earlier), which is another reason Samsung might be considering this shift. Furthermore, growing competition from Chinese brands could also be a contributing factor.
Foldables, while undeniably innovative, still struggle to appeal to the majority of consumers. Adding to the challenge is the price factor, which plays a critical role in limiting their adoption.
