SAN RAMON, Calif. -- Samsung is hoping cheaper but more durable versions of its foldable phones will broaden the appeal of a high-concept design that's so far fizzled with consumers.
The electronics giant on Wednesday unveiled its effort to turn things around with two new products designed to function as both a phone and, when unfolded outward on a hinge, a tablet.
The larger Galaxy Fold3 has a 7.6-inch display when unfolded and will sell for $1,800, a 10% drop from last year's model. The other device, the Galaxy Flip3, looks more like a flip phone, but can still be opened from its clamshell position into a 6.7-inch display. It will sell for $1,000, more than 25% below the price for last year's original model.
Besides the 5G-capable, Android-powered phones, Samsung also unveiled its first smartwatches powered by software designed in tandem with Google as both companies try to catch up with Apple in that part of the wearable-tech market.
Since releasing its first foldable phones in 2019, Samsung has been hyping the technology as a breakthrough that will spur more consumers to splurge on new phones instead of holding on to older devices until they wear out or upgrading to new models that have most of the same features.
But foldable phones have barely made a ripple in the smartphone market, with roughly 2 million of the devices shipped last year, according to the research firm International Data Corp. That's a tiny fraction of the nearly 1.3 billion smartphones shipped worldwide last year, the firm said.
"What has really been holding back the mass consumption of these foldable devices is the high price," International Data analyst Nabila Popal said. "Most people really don't see the need for it. At least nothing that justifies forking out an additional thousand dollars."
Popal believes Samsung's lowered prices for its latest foldable phones are still too far above what most consumers are willing to pay for phones. That's one reason International Data projects only a modest uptick in foldable phone shipments this year, to an estimated 6 million to 7 million devices.
Besides high prices, sales have been held back by doubts about whether the foldable devices can withstand the wear and tear that traditional smartphones typically endure. Those worries have shadowed Samsung's foldable lineup since it delayed the release of first models in 2019 to fix problems with bulging screens and flickering displays.
Samsung has equipped its newest foldable phones with more durable glass and water resistance to reduce the chances of the devices being damaged. It has made the foldable phones compatible with its popular S Pen stylus for the first time to woo customers accustomed to using the digital writing tool on Samsung's traditional Note and Galaxy phones.
In another sign of foldable phones' progress, nearly 50 of the top 100 mobile apps are now available for its unique format, said Drew Blackard, the South Korean company's vice president of product management.
Those improvements have emboldened Samsung to make the foldable phones its marquee products during the second half of the year, backed by a marketing campaign that will hail their advantages.
Samsung committed to "a full-scale flagship marketing" blitz for its foldables this year during its most recent earnings call. The Suwon-based company has invested heavily in developing the flexible displays, custom-designed hinges and other adaptations required to produce durable foldable gadgets, and with its third generation it's seeking to capitalize on that advantage.
"The market demand for foldable smartphones is growing exponentially," Samsung said in a statement, citing analyst forecasts projecting a tripling of sales to 6.5 million units. "Samsung will be the leading and foremost provider, driving the market demand. We anticipate this generation of foldables will be our best-selling yet."
Samsung, the world's largest smartphone maker is under pressure not just from Apple but also increasingly sophisticated Chinese rivals from Xiaomi Corp. to Oppo, particularly in parts of Europe and India. On Tuesday, Xiaomi chief executive Lei Jun declared his intention to overtake Samsung within three years.
Blackard likened the third generation of Samsung's foldable phones to the third generation of the company's Note phones that came out in 2013 and changed the perceptions of a product lineup that was initially mocked for introducing smartphones with 5-inch screens. Within the next year, Apple released the first model of its trendsetting iPhones with bigger screens that have now become a standard feature.
But Apple still hasn't felt compelled to make an iPhone with a foldable screen yet.
Information for this article was contributed by Michael Liedtke of The Associated Press and by Sohee Kim and Mark Gurman of Bloomberg News (WPNS)