Samsung Electronics Prepares to Launch Third Foldable Phone... Will Component Stocks Rebound?

[Asia Economy Reporter Minji Lee] As news spreads that Samsung Electronics' third foldable smartphone release will be after August, investor interest in related component companies is increasing. DB Financial Investment expressed the opinion that despite the sluggish smartphone market, high consumer interest in foldable phones is expected, and it would be good to broaden interest in special component manufacturing companies.

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On the 15th, DB Financial Investment forecasted that foldable phone sales, which have increased to 200,000 units per month in the first half of this year, will grow to 300,000 units per month in the second half.

Samsung Electronics' smartphone shipments this year are expected to record 260 million units, an 11% decrease compared to the previous year. On the other hand, foldable phone sales, which were around 500,000 units last year, are projected to exceed 3 million units annually.

Researcher Seongryul Kwon of DB Financial Investment explained, “Due to consumer purchasing behavior that places high value on rarity, foldable phone sales will steadily increase despite the overall sluggish smartphone market.”

The third foldable phone to be released in the second half is reported to have a form that unfolds and folds horizontally. It is expected to use an inward folding (infolding) method similar to Samsung Electronics' first foldable phone, the Galaxy Fold, with a screen size slightly increased to around 8 inches when fully unfolded, compared to the previous 7.3 inches.

The key challenges for foldable phones are weight and upgrading the cover window. The Galaxy Fold used transparent polyimide (PI) for the cover window, and the Galaxy Z Flip used glass made by German company Schott, processed by Dowoo Insys. The product to be released in the second half is likely to use a cover window.

The price is expected to be around $1,700 to $1,800, which is between the Galaxy Fold and Galaxy Z Flip. The Galaxy Fold was sold at $2,100, and the Galaxy Z Flip at $1,380.

Components for the foldable phone are planned to be mass-produced sequentially from mid to late next month. Considering that components are usually made before the finished product, the foldable phone is expected to be mass-produced between June and July and unveiled after August.

Researcher Kwon said, “Foldable phones, the epitome of rarity demand, are expected to sell well regardless of the overall market, so components specialized for foldable phones will inevitably have continuous demand,” adding, “It would be good to broaden interest in companies producing camera modules for the Galaxy 20 Ultra and hinges for foldable phones.”

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