Samsung is experiencing a 10% decline in shipments of the Galaxy Z Flip 6 compared to the Galaxy Z Flip 5 at the same time last year. The weaker market for foldable phones, particularly clamshell models, has forced the company to pause its plans to diversify suppliers. Until this year, KH Vatech, a fellow South Korean company, supplied most of Samsung’s foldable phone hinges.
While KH Vatech continues to produce the majority of hinges for the Galaxy Z Fold 6, Samsung has turned to a new supplier for the Galaxy Z Flip 6: the Chinese company Huanli, which now manufactures nearly half of the hinges for this model, taking market share from KH Vatech.
The declining demand for clamshell hinges has posed challenges for KH Vatech, which requires orders of 7 to 8 million units to break even in its hinge business. Additionally, other hinge manufacturers that Samsung considered partnering with are now indicating a slowdown in their business plans.
Typically, Samsung sells 70% of its Z Flip models and 30% of the more expensive Z Fold models each year, and both lines are currently experiencing a similar decrease in shipments. The company faces stiff competition from brands like Oppo, OnePlus, Vivo, Huawei, Xiaomi, and Honor, the latter of which is set to launch the world’s thinnest foldable phone globally on September 5, boasting superior specifications compared to the Z Fold 6.
In response, Samsung is preparing to release a third foldable series this year, the Galaxy Z Fold Special Edition, which is thinner and features a larger main display. It remains uncertain whether the launch of the Galaxy Z Fold SE later this month or in October will help revitalize the sluggish market for Samsung’s foldable devices.
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