Innovation is one of the key drivers of economic growth. Innovation leads to newer products or services that lead to higher productivity, which could lead to greater efficiency, which could lead to higher profits. Businesses exists to make money, and that means making a profit! As productivity rises, more goods and services are produced, which leads to more jobs being created, which leads to more discretionary income for the American people to spend which keeps the economy growing.

Samsung is one of the most innovative companies in the world, and they are bullish about bringing back the flip phone. Yesterday, the Korean tech giant launched two new smartphones: the Galaxy Z Fold3, which folds out like a book into a 7.6-inch tablet, and the Galaxy Z Flip3, whose vertical orientation lets you relive your early 2000s flip-phone fantasies.

They’re not the first of their kind. In 2019, Samsung released its OG foldable phone after delaying the rollout over durability concerns. That phone was clunky, cost $2,000, and was described as an “expensive experiment.”

What’s different this time is…just about everything:

• The higher-end Z Fold3 costs $1,800 while the Z Flip3 costs $1,000, finally putting a foldable phone in a similar price bracket as an iPhone.
• Both phones are water resistant, sturdier, and have updated software.

Big picture: Samsung needs to convince consumers that foldable phones are more than just a gimmick. Only 2 million foldable phones were shipped last year out of 1.3 billion total smartphones, per research firm International Data Corp.

Bottom line is that innovations like these drive economic growth by helping businesses produce more with less—progress that is measured as rising productivity. As businesses and employees and the American people as well become more productive, the prices of goods and services fall and workers’ wages rise, improving our standard of living.

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