From budget phones to foldables, Apple is targeting Samsung's territory

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From budget phones to foldables, Apple is targeting Samsung's territory

Published: 19 Apr. 2025, 07:00 Updated: 21 Apr. 2025, 16:44

Audio report: written by reporters, read by AI

Apple signage is displayed at an Apple Store in New York on April 7. [AP/YONHAP]

Apple, in a shift away from its flagship Pro and Pro Max iPhone models, is targeting the budget and foldable smartphone segments, in which Samsung has long held a competitive edge.

Analysts say this marks a new phase in the rivalry between the two tech giants, although shifting U.S. trade policy could complicate Apple’s efforts.

Competition between the two heated up as Apple unveiled the iPhone 16e, its first budget model in three years, in February.

The move appears to have paid off. According to market tracker Counterpoint Research, Apple overtook Samsung in global smartphone sales to consumers in the first quarter of this year, a first since the firm began tracking the market in 2015. Samsung typically led the first quarter, when it holds its annual Galaxy S series launch.

“The iPhone 16e helped Apple expand its market share in places like Japan,” said Park Jin-seok, a senior analyst at Counterpoint Research.

Apple priced the 128GB iPhone 16e at $599, filling the price gap between the entry-level iPhone SE and the base iPhone 16. The new model appeals to consumers wary of high prices of the flagship models and helped maintain momentum between product cycles ahead of the iPhone 17 launch later this year.

The delayed release of Samsung’s Galaxy S25 lineup and concerns over potential tariffs under U.S. President Donald Trump also led some consumers to buy iPhones earlier than usual, further boosting Apple’s sales.

Samsung, however, remains the global leader by shipments, holding 20 percent of the world’s market share compared to Apple’s 19 percent. Shipments reflect the number of devices that manufacturers send to retailers and carriers, offering a broader view of supply rather than direct consumer sales.

Samsung's foldable phones are displayed at a store in Jongno District, central Seoul, on July 12, 2024. [NEWS1]

Apple plans to release its first foldable iPhone in the second half of next year, entering a category that Samsung has dominated since 2019.

Industry sources expect the foldable iPhone to cost $200 to $400 more than the Galaxy Z Fold6, which debuted last summer.

Samsung currently holds about 40 to 50 percent of the foldable market. Considering Apple’s strong brand loyalty, competition in the segment could intensify in 2026.

Yet Apple’s entry into foldables comes with challenges. Particularly, U.S.-China trade friction. Trump’s unpredictable stance on tariffs adds uncertainty for Apple, which manufactures about 80 percent of its iPhones in China.

The Trump administration temporarily waived mutual tariffs on tech products like smartphones and PCs on April 11. But just two days later, Trump warned of a crackdown on what he described as “all unfair trade balances, and nonmonetary tariff barriers.” That whiplash has unsettled the tech sector.

If tariffs return, analysts warn that iPhone prices could rise by up to 2.5 times. Apple would then face a dilemma: Pass the cost on to consumers and risk losing market share, or absorb it and see profits shrink.

Broader economic risks loom as well. Counterpoint Research said trade tensions and global uncertainty could derail the smartphone market’s expected 4 percent annual growth. The industry researcher warned that the market could end flat or even decline this year.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY YI WOO-LIM [[email protected]]