*

Samsung executive says foldable phones are ready for

mainstream

sales

*

Foldable phones are 1.5% of smartphone market according to

IDC

but an important premium niche

*

Canalys forecast predicts Samsung foldable phone sales

flat this

year

*

Foldable phone pioneer Samsung is losing market share to

Chinese

rivals -Canalys

By Hyunjoo Jin and Heekyong Yang

SEOUL, July 9 (Reuters) - Samsung Electronics ( SSNLF )

on Wednesday unveiled thinner, lighter new foldable

phones as it aims to fend off Chinese competition in the

higher-margin, premium segment that remains untapped by arch

rival Apple ( AAPL ).

The stakes are high. The South Korean company lost its

global smartphone crown to Apple ( AAPL ) in 2023, and faces growing

competition from Chinese rivals like Huawei and Honor.

Meanwhile, Samsung's mainstay chip business has suffered a

profit slump stemming in part from its delayed supply of

artificial intelligence chips to Nvidia ( NVDA ).

Samsung's mobile president and chief operating officer, Choi

Won-joon, said his most important mission was to make Samsung a

leader in AI-powered smartphones.

"I believe that foldable phones, integrated with AI

features, are ready to become mainstream by offering unique,

differentiated experience," he told Reuters in his first media

interview since being promoted in March.

He said Samsung aims to take a leadership position in AI by

enhancing cooperation with external partners like Google

, unlike Apple ( AAPL ), which has been using in-house AI

technology that has faced delays in adding key features.

Samsung also in New York unveiled its first smartwatches

equipped with Google's AI voice assistant, Gemini, which can

make recommendations to the owner such as good locations for a

run, as an example.

PREMIUM HALO

Samsung said in April that it was pushing ahead with a

premium product strategy, as U.S. tariffs threatened to dampen

demand and raise component costs.

The smartphone maker increased the U.S. price of Galaxy Z

Fold 7 to $1,999 by 5% from its predecessor Fold 6, while

introducing a less expensive version of its Galaxy Z Flip 7

clamshell phone, Flip 7 FE, priced at $899.

Galaxy Z Fold 7 is equipped with Qualcomm's ( QCOM ) fast

processor, Snapdragon 8 Elite, while Galaxy Z Flip 7 is powered

by Samsung's in-house Exynos chips.

Analysts said Samsung's new models tackled some of the

issues with foldable phones such as bulkiness, and would create

a premium halo around the brand. The Galaxy Z Fold 7 weighs 10%

less than its predecessor and is 26% thinner.

But high prices and a lack of use cases mean foldable phones

are likely to remain a niche segment, the analysts said, with

data from research firm IDC showing they account for just 1.5%

of the total smartphone market.

Research firm Canalys predicts Samsung's foldable shipments,

which peaked in 2022, will remain flat or slightly declining in

2025, in line with the broader market's flat growth, according

to data provided to Reuters.

Samsung's foldable smartphones account for 4% of its total

phone sales but 16% of those priced over $800, Canalys said.

Its data shows Samsung's dominance of the foldable phone

segment is being eroded by Honor and Huawei, which are enjoying

strong sales, especially in China.

Samsung, which held its unveiling event in New York on

Wednesday, will focus on the United States, Europe and South

Korea for foldable phone sales, Choi said.

Choi said Samsung is "working hard" to develop tri-foldable

phones, which users can fold three ways, without elaborating on

the launch date.