Samsung Cuts Foldable Production by 40% Amid Strategic Shift

Samsung adjusts foldable phone strategy as market competition intensifies and Galaxy S25 production gains priority

Key Takeaways

• Samsung maintains foldable leadership with thinner designs — Galaxy Z Fold7 measures 8.9mm thick when folded, matching Chinese competitors like Honor Magic V5 and Oppo Find N5
• Production cuts signal strategic shift — Samsung plans to reduce foldable production from 8.2 million to 5 million units in 2025 while increasing Galaxy S25 production by 7%
• Premium pricing with Google AI integration — New Galaxy Z Fold7 starts at $1,999.99 (up $100) and features Google Gemini AI across all new devices including Galaxy Watch8 series

Introduction

Samsung reinforces its position as the global foldable smartphone leader with thinner designs and deeper AI integration at Galaxy Unpacked 2025. The company unveiled the Galaxy Z Fold7 and Z Flip7 alongside the Galaxy Watch8 series, all featuring Google’s Gemini AI capabilities. These launches come as Samsung adjusts its production strategy, cutting foldable unit targets while maintaining its 22.88% global smartphone market share.

The event showcases Samsung’s response to intensifying competition from Chinese brands like Honor and Oppo, which now offer comparable foldable thickness and features. Samsung’s latest devices represent both technological advancement and strategic repositioning in a competitive premium market segment.

Key Developments

The Galaxy Z Fold7 measures 8.9mm thick when folded and 4.2mm when open, featuring an 8-inch main display with 2,600 nits peak brightness. The device includes a triple camera array with the Galaxy Z series’ first 200MP primary lens and runs on the Snapdragon 8 Elite processor. Samsung offers trade-in deals up to $1,150 with pre-orders that include Android 16 and One UI 8 preinstalled.

The Galaxy Z Flip7 introduces a 4.1-inch Super AMOLED FlexWindow cover screen, expanded from 3.4 inches on the previous model. At 13.7mm when folded, it surpasses the Motorola Razr+ in slimness while offering 31 hours of video playback capability. Samsung also launched the Galaxy Z Flip 7 FE at $899, providing a budget-friendly foldable option.

The Galaxy Watch8 series incorporates new health tracking features including antioxidant levels and vascular load monitoring. The watches are 11% thinner than previous models and feature Google Gemini AI integration. The Galaxy Watch8 costs $349 while the Classic version is priced at $499.

Market Impact

Samsung maintains its position as the world’s leading smartphone vendor with 60.5 million units shipped, ahead of Apple. The company holds a 22.88% global smartphone market share despite facing increased competition from Chinese brands like Transsion, which has entered the top five global vendors.

The $100 price increase for the Galaxy Z Fold7 reflects Samsung’s positioning in the ultra-premium segment while the introduction of the Galaxy Z Flip 7 FE at $899 targets price-conscious consumers. Samsung’s aggressive trade-in deals and storage upgrade promotions indicate efforts to maintain market share against emerging competitors.

Production adjustments signal market realities as Samsung cuts foldable production from 8.2 million to 5 million units in 2025. This reduction contrasts with the 7% production increase planned for the more successful Galaxy S25 series, reflecting strategic resource allocation toward best-selling product lines.

Strategic Insights

Samsung’s foldable strategy faces a critical juncture as Chinese competitors achieve comparable thickness and features at potentially lower price points. The company’s decision to reduce foldable production while increasing Galaxy S25 output suggests a pragmatic approach to market demand and profitability.

The omission of S Pen stylus support during the presentation reflects user behavior data showing limited adoption among Fold users. This decision streamlines the device experience while potentially reducing manufacturing complexity and costs.

Google Gemini AI integration across all new devices positions Samsung to compete in the AI-enhanced smartphone segment. Features like Drawing Assist, Writing Assist, and Circle to Search represent Samsung’s response to similar capabilities from competitors, particularly Apple’s AI initiatives.

Expert Opinions and Data

Parker Burton highlighted the Fold7’s compact nature at the event, noting that “it suddenly feels like a regular phone you’re used to.” This observation underscores Samsung’s progress in addressing the bulk concerns that have limited foldable adoption.

Annika Bizon, Samsung’s VP of product and marketing, referenced Apple’s development of similar features, stating that “imitation is the best form of flattery.” This comment reflects the competitive dynamic as major smartphone manufacturers converge on similar AI-powered capabilities.

According to Business Insider, Samsung continues to focus on foldable smartphones in the competition for thinner models. Industry observers note that Samsung’s aggressive push into foldables keeps it ahead of rivals, particularly as Apple has yet to release a competing foldable device.

Conclusion

Samsung’s Galaxy Unpacked 2025 demonstrates a balanced approach between technological innovation and market pragmatism. The company maintains its foldable leadership through design improvements and AI integration while adjusting production to reflect actual market demand. Samsung’s success depends on converting these technological advances into sustained sales growth while defending against both established competitors and emerging Chinese brands in the premium smartphone segment.