According to the Korea Herald, Samsung is steadily losing its place in the VR/AR space due to its obsession with foldable smartphone technology.
In 2019, Samsung unveiled its first commercial foldable smartphone, the Samsung Galaxy Fold. The Android-based device has received mixed reviews, garnering praise for its innovative design while being heavily criticized for its low durability.
Recent market data suggests that the VR/AR market will evolve rapidly in the coming years. By 2024, the industry's market capitalization could reach $300 billion. Rivals for Samsung such as Apple, Microsoft, Meta and Sony are developing or have launched XR headsets to guide users into the virtual world, but Samsung continues to focus on expanding its lineup of foldable smartphones.
Kim Gwang-soo, an analyst at eBest Investment and Securities, said: "It's the big tech companies that are leading the way for XR devices, not smartphone makers, because they have the necessary content and platforms, Google has the Android operating system, Microsoft has the Xbox, Sony has the PlayStation. Samsung's launch of the XR device is risky, so it has no choice but to stick with pushing for foldable smartphones. ”
According to a recent report by market tracker Counterpoint Research, while Samsung maintained its number one position among global smartphone suppliers in 2021, its overall sales grew only 0.9 percent year-over-year, while rivals Apple and Xiaomi grew 25.5 percent and 32.5 percent, respectively.
While growth in Samsung's smartphone business has slowed, the company remains committed to the potential for foldable devices to rekindle momentum. Samsung shareholders are said to be concerned about its perceived focus on foldable devices, which has distracted the company from competing with its main rivals' future AR and VR devices.
Apple has said it plans to replace its line of iPhone devices with dedicated AR/VR headsets in the next 10 years, suggesting a huge shift in the smartphone industry.