Samsung’s new foldable smartphone is a “game-changer,” but investors should not expect the new device to be a major contributor to the company’s profits this year, according to an analyst.
The South Korean tech giant announced the new phone, called the Galaxy Fold, on Wednesday at a launch event in San Francisco. It builds on Samsung’s engineering and display innovation since its first flexible display prototype in 2011.
“It’s a game-changer in how we may use our devices in the next decade, where you can convert your phone into a tablet,” Mark Newman, managing director for global memory, storage and electric vehicles at Bernstein, told CNBC’s “Squawk Box.”
But the smartphone’s steep price of $1,980 would likely be a barrier to widespread adoption.
“It’s a 2,000-dollar price point, so it’s too expensive, really, for most people to buy,” Newman said. Samsung was “always talking about a limited launch — very, very limited geography, a million units or less. It’s not really going to drive Samsung’s bottomline at all this year,” he added.