Samsung Foldable Approaches '1 Million Units Sold Domestically'... Why It Can't Smile Despite Record-Breaking Success

[Asia Economy Reporter Joselgina] Samsung Electronics' 3rd generation foldable phones, the 'Galaxy Z Flip3' and 'Galaxy Z Fold3,' are on the verge of surpassing 1 million units sold domestically just over a month after their release. This is not only nearly a month faster than the strategically launched flagship 'Galaxy S21' earlier this year but also represents a record-breaking success across the entire Galaxy series. However, Samsung Electronics, caught in a 'supply shortage' during a critical growth period, appears to be anxious despite the strong performance.

According to the telecommunications industry on the 1st, the domestic sales of the Z Flip3 and Z Fold3 are expected to exceed 1 million units by this weekend. The pre-order performance of about 920,000 units during the first week of last month directly translated into activations and sales. This sets the fastest record for 1 million units sold among all Galaxy series, similar in speed to the 'Galaxy Note10' and 'Galaxy S8'.

Especially significant is that the Z Flip3 and Z Fold3 are not part of the basic bar-type strategic flagship lineup but represent a new form factor. This shows that Samsung's 'foldable all-in strategy,' which was aggressively pushed even at the cost of canceling the release of a new Note series model?previously a 'cash cow' with cumulative sales reaching 1 million units per series?has succeeded in the market. The Galaxy S21, released earlier this year, achieved 1 million domestic sales 57 days after launch.

Industry insiders attribute the early success mainly to Samsung Electronics significantly reducing the price burden by lowering the launch price of the 3rd generation foldables by 400,000 KRW compared to their predecessors and enhancing durability. Among the two models, the Z Flip3, which emphasizes stylish design and portability, is leading sales by selling about twice as many units as the Z Fold3. The Z Flip3 and Z Fold3 unusually had their pre-order activation periods extended twice.

However, it is uncertain whether the sales momentum will continue. From this day, pre-orders for Apple's strong competitor, the 'iPhone 13,' have begun, and device supply remains unstable. The Z Fold3 is already sold out on Samsung.com, a self-supply channel. The Z Flip3 also requires about four weeks from purchase to delivery. A representative from a telecom agency said, "Customers still have to wait at least two weeks," describing the situation.

The ongoing delays in Samsung Electronics' foldable phone shipments and activations are largely due to demand forecasting failures and the global semiconductor supply shortage. The worldwide semiconductor shortage is prolonged, making a quick resolution difficult. An industry insider said, "Samsung should be rowing hard while the tide is in, but instead, they are failing to deliver products on time, increasing customer dissatisfaction," adding, "Samsung Electronics is in a tough spot despite the strong sales." The iPhone 13, officially launching domestically on the 8th, is also experiencing supply issues with some models in first-release countries like the United States.

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