Samsung Electronics Co.’s Galaxy Z Flip has proved again that foldable phones could create new smartphone demand with its initial shipments out of stock on its first day in several markets including the United States, United Arab Emirate and Singapore.

The category-bending foldable smartphone which began selling last Friday draws a hot response also from Korea as more consumers are willing to get it even without any mobile carriers’ subsidy. The initial pre-order batch of Z Flip models are now sold out at Samsung’s online store, according to the company.

One reason behind the phone’s high demand is its simple sleek design and cheaper price tag, which starts at $1,380, lower than its bulky predecessor, the Samsung Galaxy Fold, according to market experts. A special Thom Browne variant of the model with a higher price tag is even more popular. All pre-sale tickets are sold out. Some are even asking for a premium of over 1 million won ($840) on the $2,500 limited edition on a local secondhand dealing website.

The first batch of Samsung’s new foldable smartphone is known to be some 20,000 units, 10 times larger than that of the Galaxy Fold, but the current supply is certainly outpaced by demand, market analysts said. Samsung Electronics expects this year’s sales of the Galaxy Z Flip to surpass its initial target of 2.5 million devices. Sales of the Galaxy Fold reached 500,000 units last year.

Analysts say the favorable market response is bolstering the outlook for stocks of Samsung Electronics and related component suppliers.

On Tuesday, Samsung Electronics posted a video on how the device is manufactured, tested and shipped, saying that the Galaxy Z Flip is now made in Korea not in Vietnam.

By Shin Chan-ok and Minu Kim

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