Samsung ends experiment after just three months

Samsung is ending sales of the tri-folding Galaxy Z TriFold in South Korea after just three months. High production costs for the complex hinges and expensive core components are forcing the manufacturer to shut down prematurely.

Out for Galaxy Z TriFold in South Korea

Samsung is apparently stopping sales of the tri-folding smartphone Galaxy Z TriFold in South Korea just a few months after its launch. This means that the device, which was only introduced in December of the previous year, disappears from the market after a good three months. Right from the start, Samsung designed the model less as a mass product than as a demonstration of technological feasibility for future mobile devices.

Users can transform the smartphone into a tablet with a ten-inch screen using two hinges. The product was extremely difficult to obtain for end customers. Samsung relied on a sales strategy with artificial scarcity. The company offered small batches via its website at irregular intervals, usually every two weeks on Tuesdays. The quotas were usually completely sold out within a few minutes.

High costs as the main reason

Like the South Korean daily newspaper Donga citing industry circles, the reasons for the early end lie in the cost structure. The production costs for the complex hinge as well as increased prices for core components such as the main memory and the main processor squeezed margins. The construction of a tri-fold display also requires special materials to minimize mechanical stress at the folds. Donga’s report describes in detail how tight the calculation was.

Samsung adjusted the sales price internally down to the smallest currency units in order to achieve a minimum profit zone and avoid losses. Such tightly budgeted hardware projects are unusual in the industry, as companies usually incur high development costs through the mass market. The management therefore decided against continuing production for the South Korean market.

Secondary market and US sales

The artificial shortage led to high prices on the secondary market. The regular list price was the equivalent of around 2500 euros. On reseller platforms, providers sometimes demanded sums that were three times as high. Collectors and technology enthusiasts paid high premiums to acquire one of the few copies available.

According to current information, sales will continue for interested parties in the USA until the stocks already produced have been completely sold out (the device was not available in Europe anyway). Samsung is not planning any reproduction.