Consumers are holding on to their phones longer and spending less on upgrades, putting pressure on manufacturers to bolster innovation and justify their price tags. With premium mobile phones that can cost well over $1,000 a piece, customers have also been turning to lesser-known companies, which has given rise to Chinese companies such as Huawei Technologies Co., Xiaomi Corp. and Oppo.
In China, Samsung has been almost driven out of the phone market, and globally it faces losing the title of the world's biggest handset maker to Huawei. Samsung sold 291m smartphones last year while Huawei sold 206m, according to StrategyAnalytics.
"The introduction of the Galaxy S10e is likely a response to the premium-price fatigue now plaguing the industry," Wayne Lam, a mobile devices analyst at IHS Markit, wrote in an email. "Samsung's fortune in China may very well rest on the revitalized Galaxy S10 product line."
Samsung's stock fell about 1% on Thursday morning in Seoul.
Samsung will probably sell more than 40m Galaxy S10 units in the first year of release, Counterpoint said in an email. That would be more than the Galaxy S9 for the same period, but fewer than the Galaxy S7, Samsung's best-selling S-series smartphone, it said.
The S10 and S10+ include 6.1-inch and 6.4-inch screens respectively, up from 5.8 inches and 6.2 inches on last year's models. The front-facing cameras sit inside holes cut into in the display itself as an alternative to including them in a "notch," as the iPhone does. The displays also now have in-screen fingerprint scanners, a new approach that diverts from the 3-D facial recognition scanner employed by Apple in its latest devices. They also add a third back camera as a wide-angle lens. Those models start at $900 and $1,000 respectively.
At its San Francisco event, Samsung also announced a pair of key partnerships for the new devices. Adam Mosseri, head of Facebook Inc.'s Instagram photo-sharing app, announced that an Instagram mode would be integrated into the new camera application. It lets people upload photos and videos directly to the Instagram Stories feature and use the app's filters. Samsung also said it is working with Adobe Inc. on an optimised version of its Premiere Rush CC video editing app.
The Galaxy Fold, which turns into a tablet, will cost $1,980.
"The foldable design, especially the hinge, is more refined than many other competing solutions," said Bryan Ma, vice president of devices research at IDC. "But there are still a number of challenges around hardware – thickness, crease, battery, reliability, price – as well as software. It won't be a big volume mover at that price, but keep in mind that notebook PCs used to cost $2,000, too, before they reached more affordable price points."