Samsung moves to exploit sanctions on Huawei by launching Galaxy Fold

Posted on : 2019-05-29 16:47 KST Modified on : 2019-05-29 16:47 KST
S. Korean electronics giant has yet to decide whether launch will be in US or domestic market first
Samsung Electronics President and CEO Koh Dong-jin introduces the Galaxy Fold at the 2019 Galaxy Unpacked event in San Francisco in February. (provided by Samsung Electronics)
Samsung Electronics President and CEO Koh Dong-jin introduces the Galaxy Fold at the 2019 Galaxy Unpacked event in San Francisco in February. (provided by Samsung Electronics)

The Galaxy Fold appears set for a launch no later than mid-June. While market observers had predicted the launch was unlikely to happen in the near future, Samsung Electronics and South Korea’s telecoms look to be hustling to take advantage of the current situation surrounding Huawei.

Meeting with the Hankyoreh after attending a May 28 debate organized by the Global System for Mobile Communications Association (GSMA), telecom officials said Galaxy Fold network linkage testing were proceeding without issues, while manufacturers were preparing for a target launch date in mid-June. Predicting that the market would be in for another big shakeup once new form factors (designs) are released, the officials said the telecoms’ app content was being optimized to appear suitably on the Galaxy Fold’s three screens, with discussions also under way with game companies.

When asked about the possibility of the device launch date being pushed back farther, the sources said the matter would be up to the manufacturers to decide, adding that they were “not aware” of any changes yet with the June launch plan. On May 17, Samsung Electronics published and immediately deleted a message on its homepage announcing that coupons for the Nexon mobile game “Traha” would be provided to customers opening new accounts with the Galaxy Fold. Other game companies besides Nexon have reportedly been reworking their games to suit the Galaxy Fold.

Signs of a green light on the Galaxy Fold’s domestic launch have been appearing all around. Some mobile phone sales outlets have already begun taking advance orders for the launch. Since May 23, JH Mobile has announced through online communities and social media that it would be “taking reservations for the soon-to-be-launched Galaxy Fold,” calling on users to “submit many applications, as the minimum for availability is 100 units.” Around 300 people have reportedly submitted advance order applications with JH Mobile. The three major telecoms have remained tight-lipped, insisting that the “production volumes themselves are too small to be shared.”

Industry observers said Samsung Electronics looked to be rushing to launch to take advantage of the current issues with Huawei. While some had predicted Huawei’s Mate X foldable phone could fill the market gap left by the Galaxy Fold, that model’s release has now been put on ice indefinitely amid sanctions by the US government. The US business magazine Forbes reported on May 25 that Huawei’s £899 (US$1,138) P30 Pro was selling in the UK for £100 (US$126.59) and in Singapore for S$100 (US$72.35). Samsung Electronics may opt for a strategically of fixing the problem areas identified after the initial launch last month to get the product on the market and take advantage of the vacuum.

Another question is whether the Galaxy Fold will be launched first in the US as planned, or if a South Korean launch is chosen instead. In theory, the US is a logical first step with existing pre-orders. But in addition to noting the relative lack of a US 5G network compared to South Korea, analysts also said South Korea could be chosen to avoid a replay of harsh reviews from US media.

“Neither the launch country nor the launch date have been decided,” a Samsung Electronics official said.

“We’ll announce them when the time comes,” the official added.

By Shin Da-eun, staff reporter

Please direct comments or questions to [english@hani.co.kr]

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