Blown away by innovation or price? Samsung's foldable phone opens up debate

Samsung Electro-Mechanics

21/02/2019 03:32

Feb 21 (Reuters) - Samsung Electronics Co Ltd  005930.KS 
has wowed the smartphone industry with the first mainstream
foldable screen, accompanied by a nearly $2,000 price tag that
generated heated debate as to whether it may prove too expensive
to revive slumping sales.
    The South Korean tech giant unveiled the Galaxy Fold which
resembles a conventional smartphone, but which opens like a book
to reveal a second display the size of a small tablet at 18.5 cm
(7.3 inches). It will go on sale on April 26.  urn:newsml:reuters.com:*:nL1N20F1EI
    At its launch event in San Francisco on Wednesday, Samsung
upped the surprise factor by briefing analysts and journalists
on widely anticipated aspects ahead of time, such as 5G versions
of its existing top-end Galaxy S phones.
    The unveiling of the foldable device came as a shock to many
in the auditorium.
    "I am blown away," said Patrick Moorhead of Moor Insights &
Strategy, adding the phone could help Samsung rejuvenate its
mobile business, whose lead is under attack from China's Huawei
Technologies Co Ltd  HWT.UL .
    "I believe you can innovate your way out of a mature
market," he said, noting that when Apple Inc  AAPL.O  launched
the iPhone in 2007, most industry watchers believed the market
had matured for $100 "candy bar" phones without touch screens.
    Bob O'Donnell of TECHanalysis Research said the work Samsung
had done with Facebook Inc  FB.O , Alphabet Inc's  GOOGL.O 
Google and Microsoft Corp  MSFT.O  to adapt applications to the
new screen was important.
    He said though Samsung had teased the folding phone before,
"to see it in action, to see the software – I was like, Wow.
It's hugely important that the software experience be good."
    The phone, which can operate three apps simultaneously and
boasts six cameras, also challenges the notion of what a phone
can cost, debuting at nearly twice the price of current
top-of-the-line models from Apple and Samsung itself.
    "Due to price, it's likely to be sold mainly to early
adopters. Prices are key to expanding sales," said former
Samsung mobile executive Kim Yong-serk, who is now a professor
at Sungkyunkwan University in Korea.
    "It will help Samsung burnish an image as an innovative
company, but it is unlikely to be profitable. I expect Apple to
wait say for one year and come up with foldable phones with more
features, as they did with the smartwatch," he said.
    Brokerage Hana Investment & Securities expects Samsung to
sell 2 million foldable phones this year, with the price keeping
the volume relatively low, while another brokerage expects
shipments to reach 1 million. That would be less than one
percent of the 291 million smartphones Samsung sold last year.
    Online, social media users were divided over the price, the
features, and whether consumers would even need such a phone.
    "Innovative? Sure. Needed? Not sure. 6 cameras, 2 screens
and 2 batteries at $1980?!?," wrote Twitter user @JackPhan.
    Reddit user AmazedCoder took a more positive view.
    "The fact that people are only complaining about the price
should tell you that a lot of people actually want this, but
can't get it. Second gen of this thing is gonna sell like
hotcakes."
    While most analysts expect Apple to wait until 2020 to match
the foldable phone, Samsung has set new price standards in the
premium category as it seeks to revive consumer interest in an
industry which posted its first-ever sales decline last year.
    "$1980 dollar for a #galaxyfold no thanks... watch...now the
next iPhone will be $1999," Twitter user @zollotech said.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Samsung announces folding phone with 5G -- at nearly $2,000   
 urn:newsml:reuters.com:*:nL1N20F1EI
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Stephen Nellis in SAN FRANCISCO, Hyunjoo Jin in
SEOUL and Ambar Warrick in BENGALURU; Writing by Miyoung Kim;
Editing by Christopher Cushing)
 ((miyoung.kim@thomsonreuters.com; 65 6870 3026; Reuters
Messaging: miyoung.kim.thomsonreuters.com@reuters.net))