Samsung kickstart production of new Galaxy foldables

Samsung's next two foldable smartphones are set to launch sometime in the second half of the year, and The Elec's latest report cites industry sources that Samsung Electronics has started mass-producing core components for the Samsung Galaxy Z Fold4 and Galaxy Z Flip4 (both preliminary name) has started ). Additionally, Samsung will reportedly start producing the foldables as early as mid-June.

According to reports, Samsung expects to produce more than 10 million foldable units from the Flip and Fold series by the end of the year. It's reported that 70% of those could be the Flip series, while 30% of that number is said to be the upcoming Galaxy Fold device. This is only speculation as actual production estimates will not be released until July. For reference, the 2021 Z Flip3 made up 65% of Samsung foldables, while 35% was the Z Fold3.

Samsung Display will also increase its production capacity for foldable display modules. Samsung will expand its production line from 7 to 10 at its Vietnamese factory, hoping to produce 2 million display modules per month, compared to the 1.4 to 1.5 million units previously produced. The Z Fold4 and Z Flip4 display outputs are expected to reach 1 million units per month by the third quarter.

This year, Samsung will achieve a penetration rate of 1% of global smartphone sales for its foldable devices for the first time if it manages to ship 10 million units by the end of this year.

All in all, it's estimated that the new Galaxy foldables will have a 15% profit margin, compared to the roughly 20% margin of the current generation of foldables. This is done to keep pricing within reach of consumers.

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