Samsung Unpacked preview: What to expect amid AI push and rising competition

Samsung is expected to unveil its new foldable smartphones at its Unpacked event, as it seeks to regain leadership in a market it once dominated and expand its AI ambitions across lines of its mobile devices.

The South Korean company is widely anticipated to launch the Galaxy Z Fold7 and Galaxy Z Flip7, along with a more affordable Fan Edition version of the Flip, at its second 2025 Unpacked in New York, on July 9. Samsung has not officially confirmed the names of the devices.

Design refinements expected

The new models are expected to be thinner and lighter, featuring a reinforced hinge, improved durability and upgraded cameras − including a 200 megapixel primary sensor − as well as a sleeker design inspired by the Galaxy S25 series, according to leaks and industry reports.

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The devices are also expected to run on One UI 8, Samsung's latest Android-based interface, which is anticipated to include visual refinements and tighter integration with Galaxy AI. First introduced with the Galaxy S24 series in early 2024, Galaxy AI offers tools such as real-time translation, summarisation, and AI-powered photo editing.

Entry-level foldable to broaden appeal

The Fold7 is rumoured to retain its book-style form factor but in a slimmer build, while the Flip7 is expected to offer a larger external display and improved AI features.

The addition of a Fan Edition version of the Flip would mark Samsung's first attempt to offer a more accessible foldable, aimed at users with smaller budgets.

Foldables continue to command a premium due to their complex engineering and limited production scale. The Galaxy Z Fold7 is expected to launch at around $1,899, with the Flip7 priced from approximately $1,099.

The Fan Edition variant is anticipated to retail for around $740 − roughly $250 less than the standard Flip − which could help Samsung garner more interest from consumer with lower spending power.

By comparison, the Galaxy S25 Ultra is priced from $1,299, while the iPhone 16 Pro Max starts at $1,199.

"The foldables market is clearly moving beyond its niche status in 2025," Muhannad Al Teneiji, founder of the Wealth Training Centre and Matrix for AI Applications, told The National.

"Foldable phones are expected to make up 5.9 per cent of global smartphone sales, and the segment is growing much faster than the broader smartphone market, at over 21 per cent annually."

He added that maturing design, greater durability, and cost reductions are helping foldables move beyond the premium-only segment.

Despite consistent improvements in hardware, pricing remains a key barrier to widespread adoption.

While the Flip line has generally been seen as the more affordable option, it still sits above many standard flagship devices. Whether the FE variant can shift that narrative depends on how much functionality it retains.

"Price is still an important barrier," said Mr Al Teneiji.

"The Galaxy Z Flip launch price keeps it in the premium category and out of reach for many buyers. A more affordable model, using cost-cutting measures such as a cheaper chipset and lower general specs, could bring the price down and help expand the market."

Competition intensifies

Samsung's urgency to innovate is driven by rising competition. According to Counterpoint Research, foldable smartphones accounted for only 1.5 per cent of total smartphone sales in Europe in the first quarter of 2025, growing just 4 per cent annual, as consumers remain cautious about pricing, durability, and long-term value.

Samsung's market share in the European foldables segment dropped to 41 per cent in Q1 2025, down from 56 per cent a year earlier.

Motorola has since overtaken Honor to become the second-largest player in the region with 15 per cent market share, followed by Honor at 13 per cent.

Globally, Huawei continues to dominate, driven by strong demand in China, which is the largest market for foldables.

All this is piling pressure on Samsung to deliver the wow-factor at Unpacked and reassert its leadership.

"Huawei overtook Samsung in foldables in early 2025, reaching 35 per cent global share and dominating China with over 76 percent," said Mr Al Teneiji.

"Samsung's upcoming Unpacked lineup could help it regain ground globally, especially outside China. However, reclaiming the top spot in China will be much harder due to Huawei's strong local momentum and brand loyalty."

AI at centre of Samsung strategy

Beyond hardware, Samsung's broader strategy is increasingly focused on AI.

Galaxy AI is expected to be a key component of the new devices, offering features across communication, productivity and photography.

"Samsung is making AI a real selling point with its foldable smartphones," William Santo, chief technology officer at Kaiko, told The National.

Features such as real-time translation, note summarisation, AI photo editing and voice transcription are becoming more valuable and accessible, marking a shift from marketing hype to practical integration, he added.

"While AI is a nice-to-have feature right now, it's going to be a must-have in one to two years," Mr Santo said.

"Smartphones could increasingly turn into a fully featured AI assistant, efficient and emotionally intelligent, acting as a copilot for communication, navigation, search, and more."

Smartphones of the future could go beyond being simple devices and could turn into an operating system for life: a way to connect to the hardware in more meaningful and helpful ways.

The devices of the future could also adapt new ways of interacting with the fast-evolving technology that has become so integral to everyday life, he added.

"Users are paying more attention to AI features when choosing phones in 2025," said Mr Santo. "About one-third say AI makes them want to upgrade sooner."

However, traditional factors such as battery life, camera, and screen quality are still a priority for a majority of users, he added.