Samsung faces a setback with the Galaxy S25 Edge, launched in May 2025, as its sales fall short of expectations, leading to a significant production cut in June. Measuring just 5.8 mm thick, the model promised innovation, but industry sources indicate the South Korean giant slashed the number of units manufactured, signaling concerning commercial performance. The scenario contrasts with the company’s plans to ramp up production of foldable smartphones, like the Galaxy Z7, for the US market in anticipation of new American trade tariffs. This strategy reflects an attempt to balance losses and adjust supply in a competitive market. The move comes as Samsung plans to replace the Plus model with the Edge in the Galaxy S26 series, set for 2026, making the current performance even more critical.
The Galaxy S25 Edge, touted as a pinnacle of design and technology, failed to attract the expected audience. Reports suggest that, a month after its launch, sales began to decline, an unusual trend for new models, which typically sustain high demand for at least three months. Samsung, known for its adaptability, now faces the challenge of reassessing its strategy for the Edge line. Meanwhile, the company is doubling down on the foldable smartphone segment, which is gaining traction globally.
- Galaxy S25 Edge challenges: Despite its slim design, the model has not resonated with consumers as anticipated.
- Focus on foldables: Samsung plans to produce 600,000 Galaxy Z7 units for the US in June, up from an initial 400,000.
- Strategy for 2026: The replacement of the Plus model with the Edge in the Galaxy S26 series is now under scrutiny due to current performance.
The current situation demands swift adjustments to maintain competitiveness in a tech industry where innovations and consumer preferences shift rapidly.
Underwhelming performance
The Galaxy S25 Edge was designed to showcase Samsung’s ability to blend aesthetics and functionality. At 5.8 mm thick, the device is among the slimmest ever released by the company, yet this was not enough to drive sales. According to industry insights, production was drastically reduced in June, reflecting low demand. The sales drop is particularly alarming since Galaxy S-series smartphones typically see strong sales in the first few months post-launch.
Market sources suggest the S25 Edge’s performance may stem from saturation in the premium device segment. Consumers, increasingly discerning, seek clear differentiators like longer battery life or advanced AI features, which may not have been prominent in the new model. Additionally, stiff competition from brands like Apple and Xiaomi likely contributed to the situation.
Samsung, aware of the issue, has begun adjusting its strategy. The reduction in S25 Edge production allows the company to redirect resources to other projects, such as foldable smartphones, which show greater growth potential.
Strategy for the US market
Samsung is ramping up production of foldable smartphones, particularly for the United States, where demand for innovative devices remains strong. In June 2025, the company plans to manufacture 600,000 Galaxy Z7 units, a significant increase from the initially planned 400,000. This move is a direct response to trade tariffs set to take effect in the US, requiring an early boost in supply to avoid additional costs.
The Galaxy Z7, including the Z Fold 7 model, will lead this strategy. Of the total 930,000 foldable units planned for the month, the Z Fold 7 will account for 440,000, nearly half of the production. The decision to prioritize foldables reflects Samsung’s confidence in the potential of this segment, which combines futuristic design with advanced functionality.
- Adjusted production: The initial target of 1.34 million foldable units was reduced to 930,000, with a gradual increase planned for July.
- Z Fold 7 focus: The model is Samsung’s key bet to capture the premium market.
- Tariff anticipation: The expanded production aims to mitigate the impact of new US trade policies.
- Growing demand: Foldables are attracting consumers seeking multifunctional devices.
This approach demonstrates Samsung’s ability to adapt to global market changes while addressing the losses from the S25 Edge.
Plans for the Galaxy S26 series
Samsung is already looking ahead to 2026, with plans to revamp its Galaxy S lineup. One of the most significant changes will be replacing the Plus model with the Edge in the Galaxy S26 series. However, this decision now faces uncertainty due to the S25 Edge’s weak performance. The Plus model, which historically underperformed compared to the standard and Ultra models, was chosen to make way for the Edge, expected to be a differentiator.
The replacement strategy was based on the assumption that the Edge would draw a larger audience, but the initial results suggest Samsung may need to reassess this approach. The S25 Edge’s performance will be a key factor in shaping adjustments for the next generation of smartphones.
Additionally, the company is investing in technologies to differentiate the S26 series, such as enhanced cameras, more efficient processors, and AI integration. These elements will be crucial to rebuilding consumer confidence and strengthening Samsung’s global market position.
Rising foldable segment
Foldable smartphones have solidified their place as a major trend in the tech market. Samsung, a pioneer in this segment, sees models like the Galaxy Z7 as an opportunity to stand out in a saturated market of traditional devices. The production of 930,000 units in June, though lower than initially planned, reflects a commitment to expanding this category.
The Z Fold 7, in particular, has garnered attention for its versatility. With a larger screen and productivity-focused features, the model targets consumers seeking multifunctional devices. Samsung is also working to make foldables more accessible by reducing production costs and offering options across different price ranges.
The focus on foldables is strategic, especially in markets like the US, where consumers are more open to innovation. Anticipating trade tariffs further underscores the need for robust production to meet demand before costs rise.
Global production adjustments
Samsung recently held a global strategy meeting to chart the course for its mobile device division. During the meeting, the company revised its production targets, focusing on optimizing resources and meeting specific market demands. The reduction in Galaxy S25 Edge production was one of the most impactful decisions, reflecting the need to reallocate investments to projects with higher returns.
Conversely, the increased production of foldables for the US demonstrates a proactive approach. The company is adjusting its supply chain to ensure inventories align with sales expectations, particularly amid trade uncertainties.
- Revised targets: Total foldable production was cut from 1.34 million to 930,000 units.
- US focus: The American market is a priority due to high demand for premium devices.
- Gradual adjustment: Samsung plans to ramp up production in July to meet seasonal demand.
These adjustments highlight Samsung’s flexibility in addressing market challenges while maintaining its leadership in the industry.
Global market competitiveness
The smartphone market is fiercely competitive, with brands like Apple, Xiaomi, and Oppo vying for consumer preference. Samsung, once the undisputed leader in global sales, faces the challenge of staying relevant in a landscape where incremental innovations are no longer enough. The Galaxy S25 Edge’s weak performance serves as a wake-up call for the company, which must deliver devices that stand out amid competition.
The focus on foldables, however, positions Samsung as a pioneer in a still-growing segment. Models like the Z Fold 7 and Z Flip 7 have the potential to attract consumers seeking alternatives to traditional smartphones. The company is also investing in marketing campaigns to highlight the unique features of these devices, such as durability and exclusive functionalities.
The reduction in S25 Edge production and the emphasis on foldables are calculated moves to keep Samsung competitive, but the coming months will be critical in determining the success of this strategy.
Preparation for trade tariffs
Trade tariffs in the United States pose an additional challenge for Samsung. With new policies set to take effect, the company must adjust its logistics to minimize impacts on final product prices. The decision to increase Galaxy Z7 production in June is part of this effort, ensuring sufficient stock before additional costs kick in.
Samsung is also diversifying its supply chain, with factories in countries like Vietnam and India, to reduce reliance on a single region. This approach provides greater flexibility in uncertain economic scenarios like the current one.
The US market, one of Samsung’s most important, requires a careful strategy. The company is working to keep prices competitive, even with tariffs, which may involve promotions and partnerships with telecom carriers.
Future of the Edge line
The Galaxy S25 Edge’s performance raises questions about the future of the Edge line as a whole. Originally envisioned as an innovative alternative, the line now faces the challenge of proving its worth in a saturated market. Samsung plans to apply lessons from the S25 Edge to enhance the next generation of devices, but success will depend on its ability to listen to consumers and deliver innovations that meet their expectations.
Replacing the Plus model with the Edge in the Galaxy S26 series is a bold move, especially after recent results. Samsung will need to invest in clear differentiators, such as performance, design, and pricing improvements, to ensure the Edge becomes a viable option in its portfolio.