Second Half Strategic Smartphones Flood the Market... Apple to Launch Soon Following Samsung and Xiaomi

Samsung Electronics unveiled the foldable smartphones 'Galaxy Z Fold3' and 'Galaxy Z Flip3' at 'Galaxy Unpacked 2021'. On the 12th, customers visiting the Samsung Delight Shop in Seocho-gu, Seoul, are seen exploring the new products. The newly released products will be available for pre-order in Korea from the 17th to the 23rd and are scheduled for sequential global release on the 27th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Joeslgina] The smartphone battle in the second half of the year is heating up. Samsung Electronics, which declared the 'popularization of foldables,' unveiled its new foldable smartphones, the 'Galaxy Z Fold3' and 'Galaxy Z Flip3,' packed with new technologies. Apple is also set to release the 'iPhone 13' (tentative name) next month. Xiaomi, closely chasing Samsung Electronics in the global smartphone market, revealed its strategic smartphone a day before Samsung's Galaxy Unpacked event.

◆ Xiaomi fills Huawei's void, challenges Samsung

According to industry sources on the 14th, among Samsung Electronics, Apple, and Xiaomi, the first to unveil their second-half strategic smartphone was China's Xiaomi. Xiaomi held a large-scale online event a day before Samsung's Unpacked and introduced its flagship smartphone, the 'Mi Mix 4.' This is Xiaomi's flagship smartphone released about three years after the 'Mi Mix 3' unveiled in October 2018.

The Mi Mix 4 attracted attention by applying 'Under Display Camera (UDC)' technology that hides the camera hole beneath the display. This technology was also applied for the first time in a foldable phone with Samsung's Z Fold3. UDC is regarded as a technology that replaces the 'notch' or 'punch hole' that dents the screen by making the camera hole invisible on the smartphone screen. It not only looks clean externally but also enables a full-screen experience, enhancing immersion. Lei Jun, CEO of Xiaomi, explained, "We have implemented UDC technology through a $77 million investment over five years, 60 patents, and hundreds of engineers."

Xiaomi Mi Mix 4

Industry insiders widely view Xiaomi's event held a day before Unpacked as a blatant move to check Samsung Electronics. Lei Jun, Xiaomi's chairman, publicly challenged Samsung Electronics by stating, "We will take the world's number one spot in smartphones within three years."

Xiaomi has been increasing its market share by capitalizing on the void left by Huawei, which has been unable to release products due to recent U.S. sanctions. Huawei recently introduced the new flagship smartphone P50 series, but due to semiconductor supply issues, it was released only as a 4G model, not 5G. It is expected that Xiaomi will absorb a significant portion of Huawei's void not only in the Chinese domestic market but also globally.

According to market research firm Canalys, Xiaomi secured a 17% share of the global smartphone market in the second quarter of this year, approaching Samsung Electronics' 19% share, which is the highest. Another market research firm, Counterpoint Research, reported that based on June's monthly sales, Xiaomi (17.1%) surpassed Samsung Electronics (15.7%) and Apple (14.3%) to take first place.

◆ Samsung Electronics bets all on foldables instead of Note

Samsung Electronics has strengthened the competitiveness of foldable phones, which can be folded and unfolded, as the traditional bar-type smartphone market has reached saturation, aiming to reshape the market. At the 'Samsung Galaxy Unpacked' event held on the night of the 11th, the new foldable smartphones Z Fold3 and Z Flip3 took center stage, replacing the existing Note series.

The Z Fold3 is the first Samsung smartphone to apply UDC. It also supports the S Pen function for the first time in the series, a feature consumers have consistently requested since the foldable phone's launch in 2019. The Z Flip3 offers various colors and enhances the usability of the cover display. Both models are the first foldable phones to feature IPX8-rated water resistance, capable of withstanding 1.5 meters underwater for 30 minutes. Additionally, Samsung improved the hinge issue, a known drawback of foldable phones, and significantly enhanced durability by conducting a 200,000-fold open and close test.

Notably, Samsung Electronics lowered the prices of these products by about 400,000 KRW compared to previous models to promote the popularization of foldable phones. The Z Fold3 was launched in the 1 million KRW price range for the first time in the Z Fold series. This price range now makes it possible to compete not only among foldable phones but also with flagship smartphones like the iPhone 13 (tentative name).

For Samsung Electronics, this strategy is seen as an effort to reshape the market with foldables amid a crisis where it is losing ground to Apple in the premium market and to Xiaomi in the mid-to-low-end market, while continuing its innovation leadership as a 'first mover.' It is also an intention to respond to the blatant 'copycat + low price' offensive from Chinese manufacturers and to preempt the market in the future form factor competition with Apple, which has yet to release a foldable phone. According to market research firm Strategy Analytics (SA), the global foldable phone market is expected to grow rapidly from 2.2 million units in 2020 to 37 million units in 2023.

The Z Fold3 and Z Flip3 will be sequentially released worldwide starting from Korea, the U.S., and Europe on the 27th. The Tom Brown special edition will also be sold in limited quantities in some countries.

◆ Apple iPhone 13 also set to launch soon... aiming to fill the Note void

Apple's new smartphone, the iPhone 13, is expected to launch next month. The industry anticipates that the iPhone 13 will also record unprecedented success. Since Samsung Electronics focused on foldable phones this year and did not release a new Note model, some even say the iPhone 13 has no worthy competitors among flagship smartphones.

Apple is reportedly increasing orders for the A15 processor, which will be installed in the iPhone 13, up to 100 million units. Market research firm TrendForce also forecasts that Apple's annual iPhone shipments this year will increase by 12.3% from the previous year to 223 million units, with the iPhone 13 accounting for about 40% of that.

iPhone 13 (tentative name) rendering image

The new iPhone is expected to be released in four models, similar to the previous iPhone 12 lineup: iPhone 13, iPhone 13 Mini, iPhone 13 Pro, and iPhone 13 Pro Max. Battery capacity is expected to increase, and camera specifications are anticipated to be significantly improved compared to the previous generation.

According to major foreign media reports, the iPhone 13 will feature an AI-based filter system that applies filters to desired parts such as objects or people to improve shapes and colors, as well as a 'Cinematic Video' function, which is a video version of the portrait mode. When using the Cinematic Video feature while recording, the background blurs, and the subject stands out. Additionally, the Pro models are said to include professional video features.

Industry insiders expect the new product launch event to take place around September 14, with an official release around September 24. Some speculate that considering the Western aversion to the number 13, the new iPhone might be named differently instead of iPhone 13.

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