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Samsung Electronics has included improved artificial intelligence features in the annual refresh of its foldable phone lineup as it tries to fend off competition from Chinese rivals in the fast-growing market.
The South Korean company pioneered the premium niche segment based on its strength in flexible displays, but Chinese groups are rapidly expanding their market share with more affordable models.
Samsung unveiled the Galaxy Z Fold6 and Galaxy Z Flip6 smartphones on Wednesday, priced at $1,899.99 and $1,099.99, respectively, at an event in Paris aimed at drumming up interest in AI-powered foldable devices ahead of the Olympics.
In January, it launched its flagship Galaxy S series capable of running AI-generating functions “on-device”, in a bid to revive a handset market that had suffered its worst year in a decade in 2023 .
The company said Wednesday that it is “opening the next chapter of Galaxy AI by leveraging its most versatile and flexible form factor, perfectly designed to enable a variety of unique mobile experiences.”
The phone’s launch comes at a critical time for Samsung as it competes for the top spot in smartphone sales with Apple and as consumers trade up to premium handsets at higher prices. The American technology group is expected to unveil a new iPhone with AI generation capabilities this year.
The latest foldable phones are thinner and lighter with more durability. The Galaxy Z Fold6 smartphone offers AI-enabled features to maximize its large screen and increase productivity, including live translations 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 figures from research firm IDC for the first quarter.
“It is vital for Samsung to regain momentum,” said Sheng Win Chow, an analyst at Canalys. “To differentiate itself, we expect Samsung to further lean on Galaxy AI to explore new integrations and features with its foldable devices and broader ecosystem categories.”
Samsung’s flagship AI smartphone S24 was well received by consumers, outselling its predecessors. IDC expects AI-enabled generative 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 reaches mid-range devices in 2026, taking the biggest step towards democratizing generative AI,” said Nabila Popal, a senior research director at IDC.
However, the high prices of foldable phones mean that they are not mass-market products that can make a significant contribution to Samsung’s profits. Flip phones account for less than 2 percent of overall smartphone shipments and are about three times more expensive than non-foldable phones, with their average selling prices reaching about $1,400, according to IDC.
Samsung also unveiled a range of wearables on Wednesday, including an upgraded smartwatch and a new ring with improved health monitoring features.
Analysts remain skeptical about how much artificial intelligence can help boost Samsung’s smartphone sales as the market matures. “Their AI features 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.