TECH NEWS – The South Korean tech giant is more concerned about its brand image and the durability of its devices than about profit.

The Galaxy Z TriFold introduces a new format that won’t immediately catch on, so Samsung is taking precautions to ensure its first-generation double-folding smartphone is as durable as its single-folding devices that have been on the market for years. Unfortunately, achieving the same level of durability requires careful manufacturing and inspection, so Samsung cannot increase production. Consequently, fewer Galaxy Z TriFold units will be produced, but each one will be precisely crafted.

The first batch sold out in about five minutes, and the second in two. Although there is some demand for this Samsung device, its apparent mass sales are due to strictly controlled quantities. Industry estimates suggest that Samsung has sold only 3,000 to 4,000 units, and the company is not expected to exceed 30,000 to 40,000 units globally. This is negligible compared to the success of the Galaxy Z Fold 7 and Galaxy Z Flip 7. The latter prompted Samsung to give employees working in its Mobile Experience division a 75% base salary bonus. Samsung is prioritizing brand image over profitability due to durability issues that may arise with the Galaxy Z TriFold‘s larger-scale production. Increasing production would result in more manufacturing defects and increased costs.

Reducing production volume increases the cost of Galaxy Z TriFold components. Therefore, the company compromised by using the Snapdragon 8 Elite processor instead of the latest Snapdragon 8 Elite Gen 5 processor from Qualcomm. Additionally, we’ve heard that the Galaxy Z TriFold prototype had four main cameras, whereas the final version has three. This suggests that Samsung had to cut corners in this area as well. The two hinges and multiple high-end OLED panels quickly add to the bill of materials. Not to mention, the DRAM shortage only exacerbates the issue, as the supply shortage is expected to continue until the fourth quarter of 2027.

During the product presentation, Lim Sung-taek, the vice president and head of Samsung Electronics Korea, said the price was set after several reductions. This suggests the company is making a very small profit on each unit sold. As the technology matures over time, Samsung is expected to ramp up production, but for now, the company remains extremely cautious.

Source: WCCFTech, Korea Herald