Galaxy S25 Edge: Samsung's next big bet after foldables

From left, the Galaxy S23, S24 and S25 Edge smartphones are displayed during the Samsung Galaxy Unpacked 2025 winter event in San Jose, California, on January 22. [REUTERS/YONHAP]

[NEWS IN FOCUS]
 
Samsung Electronics' Galaxy S25 Edge — a sleek, slimmed-down version of its flagship model — comes at a pivotal moment when the tech giant is in need of a major breakthrough to defend its contested dominance in the cutthroat smartphone market.
 
The S25 Edge will have to prove Samsung’s hardware superiority against fast-rising Chinese rivals and, of course, archrival Apple.
 
It is also on a mission to boost the margin of the company's Mobile eXperience (MX) division, in charge of its smartphone business, that has been struggling to stay above a two-digit rate due to soaring costs.
 

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The much-anticipated device, rumored for an April unveiling and May launch, is the slimmest Galaxy S to date if it launches with a thickness of 6.4 millimeters (0.25 inches) as anticipated by the tech industry. That is an 11 percent slim-down compared to the Galaxy S25's 7.2 millimeters.
 
It is expected to be topped with two rear cameras, compared to three on the Galaxy S25 models, and come with a price tag of 1.5 million won ($1,031) for the 256GB storage option.
 
"The purpose of the Galaxy S25 Edge is to show the world Samsung's hardware engineering edge," said Yang Seung-soo, an IT analyst at Meritz Securities.
 
"It'd better do well because the gap with Chinese players has narrowed significantly in recent years."




Hardware leadership 

The Huawei Mate XT Ultimate is showcased during the MWC trade show at Fira de Barcelona, Spain, on March 3. [REUTERS/YONHAP]

Threats by Chinese players have always been there, but Samsung Electronics has striving to ensure that its leading edge in hardware technology hasn't eroded.
 
The successful launch of its foldable Z series in 2019, which led Samsung to grab 87 percent of the global foldable smartphone market the following year per Display Supply Chain Consultants (DSCC) data, is one example.
 
However, that seems to not be the case anymore.
 
Samsung's leadership was contested significantly when China's Huawei launched the trifold smartphone, the Mate XT, for the first time in 2024 while the Korean firm was still at the stage of just teasing the concept. Samsung hinted at it again at MWC 2025 early this month.
 
Its share is expected to have dropped to 40 percent in 2024, DSCC says.
 
A slowdown in the foldable market is also pushing Samsung Electronics to look for its next premium innovation.
 
According to DSCC, the foldable smartphone market, which saw annual growth of at least 40 percent between 2019 and 2023, is projected to decline by 4 percent in 2025 — its first-ever annual contraction. Demand for foldable smartphones remains concentrated in Korea and Europe, while the devices struggle to gain traction in the United States.
 
As a result, Samsung is pivoting to ultrathin smartphones.
 
"With the foldable segment losing steam, Samsung Electronics will have to secure an early lead in the slim smartphone market with the Edge," researcher Yang said.
 
Samsung tested the market response for its slim smartphone when it launched the Special Edition version of the Galaxy Z Fold 6 last year, which recorded a sellout for all three rounds of sales in Korea amid much fanfare around the world requesting an overseas launch of the gadget.
 
Apple is also slated to launch an ultrathin smartphone dubbed the iPhone 17 Air later this year, which is rumored to boast a thinness of around 5.5 millimeters.


More models, more margin 

Samsung Electronics unveiled the AI-powered, budget-friendly A series at MWC 2025. [SAMSUNG ELECTRONICS]

 
Samsung’s push for new models is also driven by its dire need to improve its declining operating margin.
 
The operating margin for the company's MX division, which once peaked at 18 percent in 2013, deteriorated to 11.6 percent in 2023, while that of rival Apple has remained well above 30 percent.
 
The rate is expected to fall even lower to 9.1 percent in 2024 and 8.7 percent this year, according to estimates by Shinhan Securities.
 
"Usually, the second quarter is when sales of the flagship series — in this case, the Galaxy S25 — start to decrease," said Roh Geun-chang, head of the research center at Hyundai Motor Securities.
 
"With the high average selling price of the Edge line, Samsung Electronics will be able to elevate its operating margin."
 
Samsung's faltering operating margin mainly stems from the company's decision to outsource the mobile application processor, which is the most expensive component of a smartphone.
 
With a disappointing performance from its in-house processor, the Exynos, Samsung opted to deploy all devices of the Galaxy S25 series with Qualcomm's Snapdragon processors, which explains the projected plummet in its operating margin this year. The upcoming Edge model is also expected to employ the Snapdragon series.
 
"With budget models like the A series being Samsung's bestsellers, a premium lineup like the Edge model is essential to maintaining its margin," Roh said.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]