As the smartphone industry looks for avenues to reinvigorate a slowing market, foldable phones take center stage, with Samsung leading the charge. Notably absent from the foldable frenzy is Apple, as major players like Samsung, Motorola, and Huawei aim to turn foldable devices into mainstream contenders.
The Foldable Market Landscape
Despite being on the market for a few years, foldable phones, featuring screens that unfold like a book, have struggled to capture mainstream consumer interest, constituting just over 1% of the global smartphone market. Samsung, the world’s largest smartphone manufacturer, has made significant investments in marketing its 5G Galaxy Z series, anticipating that foldable devices may constitute a third of smartphones priced above $600 by 2027.
Industry’s Bet on Foldables
Major players, including Motorola Solutions and Huawei, are placing their bets on foldables to rejuvenate a market that has experienced its worst year in over a decade. While foldables are gaining traction in premium segments in the U.S. and China, they are far from becoming mainstream. Counterpoint Research estimates around 16 million foldable phones to be sold in 2023, constituting only 1.3% of the expected 1.2 billion smartphones sold globally.
Challenges in Foldable Adoption
Concerns about pricing, reliability, and utility are hindering consumer adoption, raising questions about potential market oversaturation. Despite the small market share, foldables are making headway in the premium segment, contributing to the polarization between premium devices dominated by Apple and lower-cost handsets. Convincing consumers to embrace foldables at premium prices remains a challenge, primarily due to worries about the durability of flexible screens and mechanical hinges.
Market Dynamics and Innovations
While return rates for foldables are higher than traditional smartphones, indicating potential hurdles in securing repeat purchases, Chinese manufacturers like Honor and Huawei have found a more receptive market for foldables in China. Samsung continues to dominate the global foldables market, holding a 73% share in the quarter. The industry views foldables as a source of innovation in a market hungry for excitement, but Apple’s entry into the foldable arena is anticipated to reshape the dynamics.
