Increasing Supply and Double Compensation... The Unusual 'Galaxy Z Fold2'

Samsung Electronics Launches Major Offensive Backed by Positive Reviews of Galaxy Z Fold2
Switch from Fold and Get 1 Million KRW...Offering Double Trade-in Value for Used Devices
Testing Ground to Evaluate Potential New Flagship Following Galaxy S and Note Series

Galaxy Z Fold2 (Photo by Samsung Electronics Newsroom)

[Asia Economy Reporter Han Jinju] Samsung Electronics has pulled out various cards to boost the early sales momentum of the Galaxy Z Fold2. With significant improvements in design and specifications compared to its predecessor, along with positive reviews from foreign media, the company believes this is the perfect timing to popularize foldable phones.

Samsung Electronics will increase the initial supply of the Galaxy Z Fold2 to several thousand units starting from the pre-order launch on the 11th. Production capacity has improved through the successive releases of the Galaxy Fold and Z Flip, and as foldable phones begin to enter the popularization stage from the very early market, demand has increased compared to previous years. The improvements in display durability and notch design, which were drawbacks of the previous model, have received favorable reviews, serving as a catalyst for expanding supply.

With the ongoing COVID-19 pandemic making offline marketing difficult, Samsung Electronics has prepared gifts and an aggressive trade-in compensation strategy. A special compensation program offering up to 1 million KRW in cash is a representative example. Customers who purchased the Galaxy Fold and buy the Galaxy Z Fold2 on Samsung.com will receive 1 million KRW, limited to the first 10,000 customers. Compensation is provided regardless of the condition of the used Fold device, and even if the display glass is damaged, compensation will be given as long as the power or camera functions properly.

Galaxy Z Fold2 and Galaxy Buds Live (Photo by Samsung Electronics Newsroom)

Before the Galaxy Z Fold2 pre-sale starting on the 11th, Samsung Electronics will offer a Galaxy Buds Live or one special package as a gift. Pre-order customers will also receive a one-year Samsung Care+ plan that includes damage and loss insurance and on-site repair services. While the previous model included wireless earbuds, the Galaxy Buds, as part of the package, this time wired earphones are bundled, and Buds Live will be provided to pre-order and early buyers.

A trade-in program targeting existing flagship smartphone users has also been announced. It includes older and mid-range models such as the iPhone 6 and iPhone SE. Samsung Electronics has set an unprecedented condition of compensating up to twice the trade-in price offered by carriers. The trade-in program applies to customers purchasing the Galaxy Z Fold2 or Galaxy Z Flip 5G from the 15th to October 31st. Eligible smartphones for trade-in compensation include the Galaxy S series, Galaxy Note series, Galaxy Note FE, Galaxy Fold, Galaxy Z Flip, and iPhone 6, 7, 8, X series, 11, and SE. This applies not only to Galaxy Z Fold2 buyers but also to Galaxy Z Flip 5G purchasers.

The success of the Galaxy Z Fold2 will be a test for whether the foldable category can join the ranks of new flagships following the Galaxy S and Note series. Although it is praised for evolving beyond foldable form factor innovation into functionality, it must also overcome the dampened consumer sentiment caused by COVID-19. Samsung Electronics, which used to ship about 300 million smartphones annually, shipped only 121 million units in the first half of this year. This is far below half of last year’s shipment volume of 291 million units. In the second half, Samsung must shake off the first half’s slump with the dual launch of the Galaxy Note20 and Galaxy Z Fold2. There is also growing interest in whether the foldable category can establish itself as a new growth engine replacing the Note series.

IT media outlet CNET commented, "Samsung has included features that address complaints about older models and refined them with sophisticated devices. The Galaxy Z Fold2 is a premium phone and not aimed at the mass market, but there will be niche demand from those willing to pay for uniqueness, unaffected by the impact of COVID-19." Park Kang-ho, a researcher at Daishin Securities, explained, "The Galaxy Z Fold2 will lead the ultra-premium brand and improve sales by targeting early adopters. It is highly likely that the Galaxy Z Fold2 will replace the Galaxy Note as the main model in the second half of 2021."

This content was produced with the assistance of AI translation services.