Samsung diversifying Galaxy Z Fold 2 production with Brazil, Vietnam
With an expected price of $2,000, the Galaxy Z Fold 2 isn’t exactly destined to make waves in emerging markets such as Brazil. But in a way, it’s likely to do just that after Samsung decided to diversify the production of its second-generation foldable flagship. According to a new report from the Far East, the Seoul-based tech giant is shifting a major portion of the Galaxy Z Fold 2 production to its Brazilian factory, which will begin manufacturing the device next month. While the final decision on the matter happened only now, the move was likely on the cards for a while now, especially in light of Samsung Vice Chairman Lee Jae-yong’s recent visit to the company’s Brazilian operations.
The significance of that gesture cannot be overstated given Lee’s indifference to Latin America over the last two decades.
Samsung to make $1 billion on Galaxy Z Fold 2 sales in Q4 2020
Another big chunk of Galaxy Z Fold 2 production – about 20% of it – will go to Samsung’s Vietnamese lines, industry insiders claim. That’s roughly 150,000 units, whereas the company’s overall plan is to manufacture between 700,000 and 800,000 of Galaxy Z Fold 2 models by the end of the year. Its domestic plants are expected to handle the majority of the remaining orders, much like they led the flow production of the seminal Galaxy Fold.
All of this is a pretty big indication that foldables are maturing at a steady pace because for such a major reshape of their mass-manufacture structure to happen, Samsung must already be heavily focused on optimizing profit margins. Which likely wouldn’t be a priority if the demand for the product wasn’t surging. While foldable smartphones are still a relatively nascent market, Galaxy Z Fold 2 Q4 sales are projected to be in the ballpark of 500,000. That’s $1 billion in added revenue for Samsung – not bad for an emerging product category with a historically steep barrier to entry. Not to mention all of the other difficulties 2020 had to throw the global economy’s way, which hurt Samsung as much as any other international conglomerate.
Officially unveiled on August 5th, the Galaxy Z Fold 2 will get its full-fledged announcement tomorrow, as part of the so-called Galaxy Unpacked Part 2 event. Samsung’s latest high-end Android smartphone will almost certainly hit the store shelves in the second half of September following a brief pre-order period.