Samsung unveils slimmer foldable phones to counter Chinese rivals and boost AI leadership

Samsung Electronics on Wednesday revealed thinner and lighter foldable smartphones as it seeks to defend its premium segment against growing Chinese competition from Huawei and Honor, while Apple has yet to enter this niche market.

Having lost its global smartphone crown to Apple in 2023, Samsung is pushing to regain momentum by integrating AI features into its foldable devices. Mobile President and COO Choi Won-joon highlighted foldables combined with AI as poised to go mainstream, offering users a unique and differentiated experience. Samsung aims to lead in AI-powered smartphones by collaborating with partners like Google, contrasting Apple’s in-house AI approach that has faced delays.

Alongside the foldables, Samsung launched its first smartwatches featuring Google’s AI voice assistant Gemini, which offers personalized recommendations such as running locations.

Samsung’s premium strategy continues amid U.S. tariffs that could raise costs. The new Galaxy Z Fold 7 is 10% lighter and 26% thinner than the Fold 6 and priced 5% higher at $1,999. The Galaxy Z Flip 7 FE offers a more affordable option at $899. The Fold 7 uses Qualcomm’s Snapdragon 8 Elite chip, while the Flip 7 runs on Samsung’s own Exynos processors.

Analysts say the new models address bulkiness concerns and strengthen Samsung’s premium brand image. However, foldables remain niche with just 1.5% market share globally. Research firm Canalys expects foldable shipments to stay flat or slightly decline in 2025, with Samsung’s foldables accounting for 4% of total phone sales but 16% of sales over $800. Samsung’s dominance is challenged by strong Chinese sales, especially in China.

Samsung will focus foldable sales on the U.S., Europe, and South Korea. The company is also developing a tri-fold phone to launch by year-end, allowing users to fold the device three ways.

To prepare for U.S. tariffs, Samsung accelerated production and shipments destined for the U.S., manufacturing primarily in Vietnam, South Korea, and India. It is also mitigating China’s rare earth export restrictions by diversifying suppliers and increasing internal stockpiles.