On July 27, Samsung Electronics introduced two new foldable smartphones, continuing its investment in the emerging market of bendable screen devices. Despite the high costs, Samsung believes in the potential of this market. The Galaxy Z Flip 5, designed like a clamshell, and the Galaxy Z Fold 5, which opens and folds like a book, are the two new offerings. Pre-orders for these devices are available in select markets, including the United States and South Korea, starting from Wednesday.

The new phones, with 6.7-inch and 7.6-inch main screens, offer larger displays than Samsung's previous foldable models. They also come with improved cameras, providing clearer visuals and additional features for various activities, such as work, text and video chats, movies, and games. The Flip 5, designed for compactness and portability, also features a 3.4-inch cover screen, enabling it to be used while folded.

These devices, powered by Qualcomm's Snapdragon 8 Gen 2 processor chips, are slightly more streamlined and lighter than their predecessors. However, they are designed to be more durable and resistant to shocks. These advanced features come with a high price tag, with the Flip 5 starting at around $1,000 and the Fold 5 priced at $1,800 in the United States.

Samsung, a leading technology company from South Korea and a significant producer of computer memory chips, has been at the forefront of foldable phone technology since 2019. The company unveiled the new phones at a grand product event in Seoul, one of the markets where foldable phones are becoming more mainstream than novelty items. According to TM Roh, the head of Samsung's mobile business, foldable devices made up about 40% of Samsung's high-end device sales in South Korea last year, and this share is expected to grow in 2023.

While Samsung aims to produce cheaper foldable phones, Roh stated that it's challenging to determine when these would be available due to the complex engineering and the balance between cost-effective components and the advanced features expected from such devices. However, Roh believes that the high prices will not hinder the mainstream adoption of foldable phones globally. He noted that people are already accustomed to foldable items, making these devices more appealing.

The industry is optimistic about the growth of foldable phone sales worldwide, with other manufacturers like Google, Motorola, and Huawei now competing with Samsung. A report from Counterpoint, a technology market research firm, predicts that global shipments of foldable phones will reach 19 million units in 2023, a 45% increase from 2022, primarily driven by increasing consumer demand in China. The report also forecasts that shipments could exceed 100 million units by 2027, assuming that Apple will release a foldable iPhone around 2025. However, Apple, a close competitor of Samsung in global smartphone shipments, has not yet confirmed any plans for foldable devices.

Samsung reported a 95% drop in operating profit for the April-June quarter compared to the same period last year, falling to 670 billion won ($526 million). The decline was mainly due to a slow recovery in the global semiconductor market.