Samsung launches foldable phones with enhanced AI to stay ahead of Chinese rivals

Samsung Electronics has included enhanced artificial intelligence features in its annual refresh of its foldable phone line-up, as it tries to stave off competition from Chinese rivals in the fast-growing market.

The South Korean company pioneered the premium niche segment on the back of its strength in flexible displays, but Chinese groups are rapidly expanding their market share with more affordable models.

Samsung on Wednesday unveiled its Galaxy Z Fold6 and Galaxy Z Flip6 smartphones priced at $1,899.99 and $1,099.99, respectively, at a Paris event aimed at sparking interest in AI-powered foldables ahead of the Olympics.

In January, it launched its flagship Galaxy S series capable of running generative artificial intelligence features “on-device”, in a bid to revive a handset market that had suffered its worst year in a decade in 2023.

The company said on Wednesday it was “opening the next chapter of Galaxy AI by leveraging its most versatile and flexible form factor perfectly designed to enable a range of unique mobile experiences”.

The phone launch comes at a critical time for Samsung as it vies with Apple for the top spot in smartphone sales and as consumers trade up to higher-priced premium handsets. The US tech group is expected to unveil a new iPhone with generative AI capabilities this year.

The latest foldable phones are slimmer and lighter with more durability. The Galaxy Z Fold6 smartphone offers AI-enabled features to maximise its large screen and boost productivity, including live phone call translations, transcription of voice recordings, video search and photo editing.

Samsung’s share of the foldable smartphone market has halved to 29.9 per cent over the past year, followed by China’s Huawei with 23.5 per cent and Honor with 14.8 per cent, according to research firm IDC’s numbers for the first quarter.

“It is vital for Samsung to bring back momentum,” said Sheng Win Chow, an analyst at Canalys. “To stand out, we expect Samsung to lean further into Galaxy AI to explore new integrations and features with its foldables and wider ecosystem categories.”

Samsung’s flagship AI-powered S24 smartphone was well received by consumers, selling much more than its predecessors. IDC expects generative AI-enabled smartphones to capture 70 per cent of the total smartphone market by 2028, with a compound annual growth rate of 78.4 per cent.

“The evolution of the technology will have the most impact once it gets to mid-range devices in 2026, making the biggest leap towards the democratisation of generative AI,” said Nabila Popal, a senior research director at IDC.

However, the high prices of foldable phones mean they are not mass-market products that can make a significant contribution to Samsung’s earnings.

Foldable phones account for less than 2 per cent of overall smartphone shipments and are about three times more expensive than non-foldables, with their average selling prices reaching about $1,400, according to IDC.

Samsung also unveiled a suite of wearable devices on Wednesday, including an upgraded smartwatch and a new ring with enhanced health monitoring features.

Analysts remain sceptical about how much AI can help boost Samsung’s smartphone sales as the market becomes more mature.

“Their AI features unveiled so far look good and have been well received, but they don’t look like a game-changer yet,” said James Lim, an analyst at US hedge fund Dalton Investments.