# Samsung’s Strategic Transition: Adjusting to Market Dynamics in 2025
Samsung, a prominent player in the smartphone market, is implementing considerable modifications to its product strategy as it approaches 2025. Following unmet ambitious objectives with the Galaxy Z Flip 6 and Z Fold 6, the firm is reportedly reducing its foldable phone output and reallocating resources to its premium Galaxy S series. This strategic change emphasizes Samsung’s determination to maintain its competitiveness in a swiftly changing market.
## **What Occurred?**
The Galaxy Z Flip 6 and Z Fold 6, introduced in 2024, did not fulfill the high expectations established by their predecessors. Although the foldable segment has been a major focus for Samsung, the latest versions experienced a significant drop in pre-orders and overall sales. In South Korea, for instance, pre-orders for the Flip 6 and Fold 6 fell by 10% compared to earlier models, with 910,000 units ordered against the 1.02 million seen with the Flip 5 and Fold 5. Despite the Flip 6 representing 60% of these orders, the figures were still disappointing.
TM Roh, Samsung’s Head of Mobile, had shown enthusiasm about raising foldable shipments by 10% in 2024. However, the outcome has been less encouraging, leading the company to rethink its strategy.
## **The Change in Approach**
### **Reducing Foldable Production**
As per a report from Korean source *EtNews*, Samsung intends to significantly cut its foldable phone production in 2025. The brand is expected to manufacture only 3 million units of the Galaxy Z Flip 7 and 2 million units of the Galaxy Z Fold 7, totaling 5 million units. This represents a decrease of roughly 3 million units compared to 2024.
While Samsung remains dedicated to its foldable range, the choice to scale back production signifies a more measured stance. The firm seems to be adjusting its expectations for this niche market, which, despite its innovation, has yet to realize widespread market acceptance.
### **Increased Focus on the Galaxy S Series**
In contrast to the diminished attention on foldables, Samsung is enhancing production of its Galaxy S25 series. Reports suggest the company aims to produce 37.4 million units of the S25, marking a 7% increase from the 35 million units targeted for the Galaxy S24. This transition highlights a renewed focus on conventional slab smartphones, which continue to lead the market.
A notable addition to the upcoming collection is the anticipated Galaxy S25 Slim, which is projected to account for 3 million units. This device could attract consumers looking for a more compact and budget-friendly flagship option, thus expanding Samsung’s appeal.
## **Reasons for the Change**
The decision to shift away from foldables and towards the Galaxy S series is based on several factors:
1. **Market Performance:** The disappointing sales of the Flip 6 and Fold 6 underscore the challenges faced in the foldable sector. Although these devices boast impressive technology, their high price points and niche appeal restrict their broader market potential.
2. **Consumer Preferences:** Conventional smartphones like the Galaxy S series continue to engage a wider audience. By concentrating on this segment, Samsung can leverage its strengths and serve a larger customer base.
3. **Profitability:** Despite the Galaxy S24 series’ success, Samsung’s overall profits have faced pressure. Jeon Young-hyun, head of the company’s DS Division, publicly recognized the necessity for increased innovation and pledged to implement changes. By redirecting resources toward its most lucrative product lines, Samsung seeks to enhance its financial performance.
4. **Competition:** The smartphone industry is highly competitive, with rivals such as Apple and Google pushing innovation limits. Samsung’s intensified focus on the Galaxy S series might assist it in retaining its advantage in this high-stakes landscape.
## **Future Outlook**
Samsung’s strategic transition is not solely about tackling current issues—it also aims to position the company for future success. The Galaxy S25 series, rumored to launch on January 22, 2025, is anticipated to play a crucial role in the company’s plans. With boosted production goals and a possible new model in the S25 Slim, Samsung is clearly betting on its flagship lineup to drive growth.
Concurrently, the company is not relinquishing its foldable aspirations. By reducing production, Samsung can concentrate on refining its foldable technology and addressing consumer concerns regarding durability and pricing. This thoughtful strategy could enable the company to create a stronger foundation for future foldable launches.
## **In Summary**
Samsung’s choice to redirect its focus from foldables to the Galaxy S series is a sensible reaction to market conditions. While the company’s foldable phones have represented a hallmark of innovation, their limited attraction has necessitated a reassessment of priorities. By intensifying its commitment to the flagship Galaxy S lineup, Samsung is capitalizing on its strengths.
