Samsung Boosting US Production Ahead of Launch

Samsung Boosting US Production Ahead of Launch

Samsung is reportedly hitting the gas pedal on its production of new foldable devices, specifically for the US market. This accelerated effort aims to get as many Galaxy Z Fold 7 and Galaxy Z Flip 7 units, along with the Z Flip 7 FE, into the hands of eager customers as quickly as possible.

Why Samsung is ramping up foldable phone production for the US

The primary reason for this rapid production push is a tactical move to navigate potential future trade hurdles. Samsung is preparing for the possibility of additional tariffs on imports that the US government could impose. By increasing shipments now, the company intends to front-load its inventory in the United States, thereby avoiding the burden of higher costs that tariffs—potentially reaching 25% or more—would impose. This strategy helps Samsung maintain competitive pricing for its devices and ensures a smoother supply chain for its consumers.

To put this heightened focus into perspective, Samsung’s internal targets for foldable units specifically destined for the US in June have been significantly adjusted upwards. The Elec’s report says that the initial plan of 400,000 units has been bumped to a more ambitious 600,000. This substantial increase aims to seamlessly meet the demand in the US. It also wants to preempt any challenges posed by trade policies. It’s a clear signal that the company views the US as a crucial battleground for its foldable technology.

Production for other countries reduced

Interestingly, while production for the US market is seeing a considerable boost, Samsung has actually adjusted its overall global foldable phone production plan for June downwards. This strategy suggests a careful balancing act. The company may be anticipating slower market growth in other regions or reallocating resources. Meanwhile, it maintains a clear priority on securing its position in the US.

The current production plans for June collectively involve 930,000 foldable units across the premium Galaxy Z Fold 7, the Z Flip 7, and the potentially more accessible Z Flip 7 FE. While June is seeing a robust push, production could reach its peak in July. This ramp-up will be particularly critical if initial market demand proves strong after the official launch, allowing Samsung to capitalize swiftly on consumer interest.

This aggressive production strategy for the US highlights how important this market is for Samsung. For the company, it’s important not only to guarantee the availability of these devices. They also need to try to avoid potential sharp price increases as much as possible.

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