Highlights
- Foldable phone shipments hit 15.9 million units in 2023, marking a 25% year-on-year increase.
- Despite advancements, foldable phones only represent 1.4% of the global smartphone market.
- Samsung leads the market, though its share dips as Huawei and other brands make gains.
- Cost optimization and technological advancements poised to drive future market growth.
The foldable phone market has carved out a niche for itself, registering a 25 percent year-on-year increase with shipments reaching 15.9 million units in 2023.
Despite these gains, foldable phones account for only about 1.4 percent of the overall smartphone market, a figure that mirrors projections for 2024.
Challenges and Opportunities Ahead
The journey of foldable phones has not been without its hurdles.
Two significant challenges have emerged as central to the conversation around their adoption.
The first is consumer retention, which has been notably low.
Many first-time users of foldable phones report maintenance issues that erode confidence in the durability and reliability of these devices.
This dissatisfaction often leads them to revert to conventional high-end smartphones when seeking replacements.
Secondly, the pricing strategy for foldable phones has been a stumbling block.
Current price points have not hit the sweet spot with consumers, making it challenging for these innovative devices to compete on cost alone.
However, there’s a silver lining.
Experts from TrendForce highlight the potential for cost optimization, particularly through the standardization and mass production of critical components like Ultra-Thin Glass (UTG) and hinges.
Additionally, an increase in foldable panel shipments from Chinese manufacturers, who offer a cost advantage over their Korean counterparts, could lead to more affordable foldable phone prices and, subsequently, higher market penetration rates.
Samsung Leads Amid Growing Competition
Samsung continues to lead the pack, albeit with a slightly diminished market share, dropping from 80 percent in 2022 to under 70 percent in 2023.
Huawei, on the other hand, has made significant inroads, boosting its shipments to capture 12 percent of the market.
Other major players like Xiaomi, Oppo, and Vivo maintain shares below 10 percent, each navigating the market with strategic caution and innovation.
As we look towards 2024, Samsung is aiming to stabilize its market share at around 60 percent.
Meanwhile, Huawei is not just content with its current success; it’s ambitiously eyeing a market share that exceeds 20 percent.
Oppo and Vivo are adjusting their strategies, shifting focus from smaller, vertically folding devices to larger, horizontally folding models due to cost-related profitability concerns.
In contrast, Huawei is set to unveil a 5G-enabled small vertical folding device, and Honor is gearing up to enter the compact foldable sector, heating the competition further.
FAQs
What was the growth rate of foldable phone shipments in 2023?
In 2023, the foldable phone market experienced a 25% increase in shipments, reaching 15.9 million units.
How do foldable phones compare to the overall smartphone market share?
Foldable phones accounted for about 1.4% of the total smartphone market in 2023, a figure that’s expected to remain consistent in 2024.
Why are consumers hesitant to adopt foldable phones?
Many users have reported maintenance issues with their foldable devices, leading to low consumer retention as people opt for more traditional high-end smartphones.
What are the major challenges facing the foldable phone market?
The foldable phone market is currently grappling with issues related to consumer retention due to device durability and high price points that have yet to appeal broadly to consumers.
How is Samsung performing in the foldable phone market?
Despite a slight decrease in market share, Samsung continues to lead the foldable phone market, with plans to maintain a significant presence moving forward.
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