2025 Winners and losers: Samsung

by Chief Editor

Samsung’s 2025 Report Card: What It Signals for the Future of Smartphones

Samsung’s 2025 performance, a mix of triumphs and stumbles, offers a fascinating glimpse into the evolving smartphone landscape. While the Galaxy S25 series enjoyed record pre-orders and foldables continued their ascent, the failure of the S25 Edge and the struggles of the FE lines highlight shifting consumer preferences and the challenges of innovation.

The Ultra’s Reign: Premium is the New Normal

The dominance of the Galaxy S25 Ultra – outselling the vanilla and Plus models combined – reinforces a clear trend: consumers are increasingly willing to pay a premium for top-tier features. This isn’t unique to Samsung; Apple’s Pro models consistently drive the majority of their revenue. The Ultra’s success suggests a future where flagship phones become even more differentiated, offering features that justify a higher price tag. Expect to see more emphasis on camera technology, processing power, and build quality in the premium segment. A recent Counterpoint Research report shows the premium smartphone market ($600+) grew 11% year-over-year, outpacing the overall smartphone market.

Pro Tip: Manufacturers are focusing on extending the lifecycle of premium devices through software updates and robust build quality, making the higher upfront cost more justifiable.

Foldables: From Niche to Notable

The 14% year-over-year growth in foldable shipments, with Samsung commanding a 64% market share, is a significant milestone. The Z Fold7 and Z Flip7’s improvements – thinner designs, more durable screens, and refined software – are clearly resonating with consumers. However, the real story isn’t just about increased sales; it’s about the expanding use cases. The fact that 30% of Z Fold7 buyers upgraded from an S Ultra indicates foldables are now seen as viable alternatives to traditional smartphones, not just novelty items. We can anticipate further innovation in hinge technology, display materials, and software optimization to make foldables even more mainstream.

The Edge of Innovation: When Bold Risks Don’t Pay Off

The S25 Edge’s failure, mirroring the lukewarm reception of the iPhone Air, is a cautionary tale. Consumers aren’t necessarily clamoring for ultra-slim phones if it means sacrificing functionality or durability. This suggests a shift away from chasing purely aesthetic trends and towards prioritizing practical features. The focus will likely return to refining existing form factors and improving core user experiences rather than pursuing radical design changes. The market seems to be saying, “Give us better, not just different.”

Exynos’s Struggle: The Chipset Battlefield Heats Up

The continued reliance on Snapdragon in most Samsung flagships, coupled with the limited use and uncertain future of Exynos, highlights the intense competition in the mobile chipset market. Qualcomm’s Snapdragon 8 Elite clearly delivered a performance advantage, influencing Samsung’s decision-making. The reported low yields and limited global rollout of the Exynos 2600 suggest Samsung faces significant challenges in catching up. This situation underscores the importance of in-house chip development for long-term competitiveness, but also the need for substantial investment and technological breakthroughs. The future may see Samsung partnering more closely with other chip manufacturers or focusing Exynos on specific market segments.

The FE Dilemma: Finding the Sweet Spot

The underwhelming performance of the S25 FE and Z Flip7 FE demonstrates the difficulty of balancing affordability with features. Pricing too close to the flagship models cannibalizes sales, while cutting too many corners results in a product that lacks appeal. Samsung needs to carefully reassess its FE strategy, potentially focusing on offering unique features or targeting specific demographics. The success of Google’s Pixel A-series, which consistently delivers a compelling value proposition, provides a potential blueprint.

The Rise of the A-Series: Mid-Range Momentum

The Galaxy A36 and A56’s success, driven by their availability in key markets like the US, signals a growing demand for well-rounded mid-range smartphones. These devices offer a balance of features, performance, and price that appeals to a broad audience. Samsung’s decision to expand the A-series lineup in the US is a smart move, filling a gap in their product portfolio. Expect to see further investment in the A-series, with more advanced features trickling down from the flagship models.

Wearables: A Need for Reinvention

The lack of a significant update to the Galaxy Watch Ultra and the controversial design changes to the Watch8 series suggest Samsung’s wearable division is facing challenges. Competition from Apple and other players is intensifying, and consumers are demanding more innovative features. Samsung needs to focus on improving battery life, health tracking capabilities, and software integration to regain its competitive edge. Exploring new form factors and materials could also be key to attracting new customers.

Frequently Asked Questions (FAQ)

Will foldables become mainstream?
Yes, but it will take time. Continued improvements in durability, software, and price will be crucial for wider adoption.
Is Exynos dead?
Not entirely, but its future in flagship Samsung phones is uncertain. It may focus on mid-range devices or specific markets.
What’s the biggest trend in smartphones right now?
The increasing demand for premium features and experiences, driving sales of flagship models and high-end foldables.
Will ultra-slim phones make a comeback?
Unlikely, at least in their current form. Consumers prioritize functionality and durability over extreme thinness.

What do you think is the most important trend shaping the future of smartphones? Share your thoughts in the comments below!

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