Why keeping the Fold range aspirational helps Samsung in more ways than one

Before Samsung unveiled a new pair of foldable phones, the Galaxy Z Fold 4 and Flip 4 at its Unpacked event last week, analysts were hoping to see an aggressive push the South Korean behemoth to make this new form factor more affordable. Although both Galaxy Z Fold 4 and Flip 4 are much-improved in comparison to their predecessors, they are still not affordable enough to become mass products — Samsung is asking $1800 for a Fold 4 and $1000 for a Flip 4. But then the high prices of these foldables also attribute a level of innovation and status along with the Samsung branding.
Fold 4 and Flip 4 costing the same as last year’s models are proof that foldable phones continue to be niche devices, targeting only the top-end of consumers. And Samsung seems pretty aware that not everyone and pricing actually creates an exclusivity that makes the phones aspirational. Interestingly, Samsung hasn’t raised the prices of the foldables to combat higher costs.

This is a clever strategy, given the competition from Apple and OnePlus in the premium segment. The S series has always been the tour de force in the high-end smartphone space but over the years the consumer interest in Samsung’s premium ‘mainstream’ smartphone lineup is waning. Although the launch of the Galaxy S22 Ultra earlier this year did help give a fillip to this lineup, the truth is that it is becoming harder for a big brand like Samsung to differentiate its high-end smartphones from that of rivals.
Samsung’s Galaxy Z Flip 4 is a more affordable foldable phone at 9. (Image credit: Shruti Dhappola/Indian Express)
Premium smartphones, no matter how saturated the market, continue to have an aspirational value that rubs off on the entire brand. It’s not that Samsung is limiting foldable phones to only top-of-the-line consumers. The Z Flip 4 is more affordable and aimed at a wider audience, and its $1000 price point is a reflection of that. Still, $1000 is a lot to pay for a phone that does not drastically change the user experience and is more about the convenience of form factor.

But one cannot take away the fact that Samsung does have an advantageous position in the foldable smartphone space. It now has years of experience in perfecting foldable displays and massive marketing muscle in a space where arch-rival Samsung has still not dived in. With players like Motorola and Xiaomi keeping their new foldable phones limited to the Chinese market at the moment, Samsung is pretty much the only global phone maker with two foldable phones targeting different form factors and price points.
The Xiaomi Mix Fold 2 is limited to the Chinese market. (Image credit: Xiaomi)
Market research firm IDC estimates that over 7 million foldables were shipped in 2021. Compared to that, an estimated 1.3 billion smartphones were sold last year. At the moment, foldable phones may seem like a small pie in the overall smartphone market, but Samsung wants its Galaxy Z lineup to capture at least half of the market 2025. Maybe the plan is not to sell cheaper foldable phones at all but to keep the prices of Z Fold and Flip steady while still attracting aspirational consumers who add value to the brand.
This comes with its own value, quite literally. A successful smartphone series with a higher average selling price and margin helps the company’s bottom line in more ways than one. For instance, it can help Samsung subsidise other budget segments and play for volume there. Samsung knows this strategy well.