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Samsung Electronics has included improved artificial intelligence features in its annual update to its foldable phone range as it seeks to fend off competition from Chinese rivals in the fast-growing market.
The South Korean company pioneered the premium segment thanks to 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 an event in Paris aimed at fueling interest in the AI-powered foldable device ahead of the Olympics.
In January, it launched its flagship Galaxy S series capable of running generative artificial intelligence functions “on the device”, in a bid to revive the handset market, which suffered its worst year in a decade in 2023.
The company said Wednesday that it will “open 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’s launch comes at a critical time for Samsung as it competes with Apple for top smartphone sales and consumers buy higher-priced premium phones. The American technology group is expected to introduce a new iPhone with generative artificial intelligence capabilities this year.
The latest foldable phones are thinner and lighter with more durability. The Galaxy Z Fold6 smartphone offers AI features that maximize its large screen and increase productivity, including live translation of phone calls, transcription of voice recordings, video search and photo editing.
Samsung’s share of the foldable smartphone market has halved to 29.9 percent over the past year, followed by China’s Huawei at 23.5 percent and Honor at 14.8 percent, according to first-quarter data from research firm IDC.
“It is vital for Samsung to regain momentum,” said Sheng Win Chow, an analyst at Canalys. “To stand out, we expect Samsung to lean more heavily into Galaxy AI to explore new integrations and features with foldable devices and broader ecosystem categories.”
Samsung’s flagship AI-powered S24 smartphone was well received by consumers and sold far more than its predecessors. IDC expects generative AI smartphones to capture 70 percent of the total smartphone market by 2028, with a compound annual growth rate of 78.4 percent.
“The evolution of the technology will have the biggest impact once it hits mid-range devices in 2026, making the biggest leap towards democratizing generative AI,” said Nabila Popal, senior research director at IDC.
However, the high prices of foldable phones mean that these are not mass-market products that can significantly contribute to Samsung’s earnings. Folding phones make up less than 2 percent of total smartphone shipments and are about three times more expensive than non-folding phones, with average selling prices around $1,400, according to IDC.
Samsung also unveiled a suite of wearables on Wednesday, including an improved smartwatch and a new ring with improved health tracking features.
Analysts remain skeptical about how much AI can help boost Samsung’s smartphone sales as the market becomes more mature. “Their AI features that have been revealed 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.