Samsung's foldable smartphone is a 'game-changer' — but it won't be a profit-maker yet, analyst says

Samsung's Mobile Division President and CEO DJ Koh holds the new Samsung Galaxy Fold smartphone during the Samsung Unpacked event on February 20, 2019 in San Francisco, California.

Justin Sullivan | Getty Images

Samsung’s Mobile Division President and CEO DJ Koh holds the new Samsung Galaxy Fold smartphone during the Samsung Unpacked event on February 20, 2019 in San Francisco, California.

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.

Source link

We will be happy to hear your thoughts

Leave a reply

Register New Account
Reset Password