Blown away by innovation or price? Samsung foldable phone opens debate

(Reuters) – Samsung Electronics Co Ltd seduced the smartphone industry with the first collapsible display, with a price tag of nearly $ 2,000, which sparked lively debate over whether it would be too expensive to boost sales down.

The South Korean technology giant has unveiled the Galaxy Fold, which looks like a classic smartphone, but that opens as a book to reveal a second screen the size of a small 18.5 tablet cm (7.3 inches). It will go on sale April 26.

At its launch in San Francisco on Wednesday, Samsung has reinforced the surprise by informing analysts and journalists on widely anticipated aspects, such as 5G versions of its existing high-end Galaxy S phones.

The unveiling of the foldable device was a shock for many in the auditorium.

"I'm blown away," said Patrick Moorhead of Moor Insights & Strategy, adding that the phone could help Samsung rejuvenate its mobile business, whose advance is being attacked by the Chinese company Huawei Technologies Co Ltd.

"I think you can innovate to get out of a mature market," he said, noting that during the launch of the iPhone by Apple Inc. in industry felt the market had matured for 100 dollar chocolate bar phones without touch screens.

Bob O'Donnell of TECHanalysis Research said that Samsung's work with Facebook Inc., Google Alphabet Inc. and Microsoft Corp to adapt applications to the new screen was important.

He said that although Samsung has teased the folding phone before, "to see it in action, to see the software – I was like, Wow. It is extremely important that the software experience is good. "

The phone, which can handle three apps simultaneously and has six cameras, also challenges the cost concept of a phone, debuting at a price two times higher than that of today's high-end models from Apple. and Samsung.

"Because of the price, it will probably be sold primarily to first users. Prices are the key to sales growth, "said Kim Yong-serk, former executive of Samsung Mobile, who is currently a professor at Sungkyunkwan University in Korea.

"This will help Samsung refine its innovative corporate image, but it is unlikely to be profitable. I hope Apple will wait a year before offering foldable phones with more features, as they did with the smartwatch, "he said.

Brokerage Hana Investment & Securities expects Samsung to sell 2 million foldable phones this year, the volume remaining relatively low, while another broker is forecasting deliveries of one million. That would be less than one percent of the 291 million Samsung smartphones sold last year.

Online, social media users were divided on price, features and even though consumers would even need such a phone.

"Innovative? Sure. Needed? Not sure. 6 cameras, 2 screens and 2 batteries at $ 1980?!?", Wrote @JackPhan, a Twitter user.

AmazedCoder, the user of Reddit, took a more positive view.

"The fact that people only complain about the price should tell you that many people want it, but can not understand it. The second generation of this stuff is going to sell like hotcakes. "

While most analysts expect Apple to wait until 2020 to match the foldable phone, Samsung has set new price standards in the premium category in order to revive consumer interest in a sector that recorded its first decline in sales last year.

"1980 dollars for a #galaxyfold no thanks … look … now the next iPhone will cost $ 1999," said Twitter user @zollotech.