Huawei is taking the lead in the foldable phone market, leaving North American brands struggling to keep up.
Key Insights
- Huawei Leads the Pack: Huawei emerged as the global leader in foldable phone shipments for Q1 2024, surpassing Samsung.
- North American Brands Lag: Samsung’s dominance is waning, with competitors like Honor and Motorola finding success outside of China.
- Market Growth: The smartphone market, including foldables, is experiencing a resurgence, with a projected 4% year-over-year growth.
The State of Foldable Phones in North America
For years, Samsung was the only major manufacturer offering foldable phones in North America. This changed with the arrival of Google’s Pixel Fold and OnePlus’s foldable devices last year. Despite these new entrants, the market remains relatively uncompetitive. OnePlus has no immediate plans for a successor to its OnePlus Open, and the Pixel Fold has faced criticism for its flaws. Meanwhile, Samsung appears to be complacent with its Galaxy Z Fold and Z Flip series, leading to a decline in its market position.
Global Trends and Market Dynamics
Huawei’s Ascendancy
Huawei’s rise to the top of the foldable phone market might surprise North American consumers, but the numbers tell the story. In Q1 2024, Huawei’s shipments increased by 257% year-over-year, securing a 35% share of the global market. In contrast, Samsung’s shipments dropped by 42%, reducing its market share to 23%.
Changing Preferences
The type of foldable phones consumers are buying is also shifting. In Q1 2024, book-style foldables accounted for 55% of all foldable phone shipments, surpassing clamshell models for the first time since 2021. This trend underscores the growing popularity of more versatile and functional foldable designs.
Success Outside of China: Honor and Motorola
Honor’s and Motorola’s Growth
While Huawei’s success is noteworthy, it’s essential to consider the impact of government sanctions limiting its presence outside China. However, brands like Honor and Motorola have capitalized on the growing demand for foldables in other regions. Motorola’s shipments soared by 1,473% year-over-year, driven by the Razr Plus and Razr 2023 models. Honor also saw a significant increase, with a 460% year-over-year growth, and its Magic V2 foldable became the best-selling model in Western Europe in Q1 2024.
Competitive Landscape
Samsung’s Galaxy Z Fold 5 and Z Flip 5 are natural competitors to the Honor Magic V2 and Motorola Razr. The shift in consumer preference toward Honor and Motorola highlights how Samsung is falling behind in innovation and market appeal.
Challenges for North American Brands
Samsung’s Position
Samsung was a pioneer in the foldable phone market, making the concept mainstream. However, its recent models, the Z Fold 4 and Z Fold 5, have been criticized for their lack of significant innovation compared to the groundbreaking Z Fold 3. Meanwhile, Chinese brands like Honor and OPPO (via OnePlus) have introduced cutting-edge technologies, challenging Samsung’s dominance.
Innovation and Competition
The OnePlus Open, essentially a rebranded OPPO Find N3, is now considered the best folding phone in the U.S., showcasing the technological prowess of Chinese manufacturers. If Samsung wants to reclaim its leadership position, it will need to innovate and offer features that can compete with these advanced devices.
The Bottom Line
The foldable phone market is evolving rapidly, with Huawei leading the charge and brands like Honor and Motorola gaining traction outside China. North American brands, particularly Samsung, face significant challenges as they strive to keep up with the technological advancements and market strategies of their competitors. As the market grows and consumer preferences shift, it will be crucial for these brands to innovate and adapt to maintain their relevance and appeal.
