Foldable Phones: Samsung Dominates Amidst Market Challenges, Future Projections Revealed. Stay updated for more developments in the foldable phone industry as the market dynamics continue to evolve.
The smartphone industry is eyeing a potential resurgence through the innovation of foldable phones, excluding Apple Inc. (NASDAQ: AAPL), which has yet to venture into this domain. Despite being in the market for several years, foldable devices have struggled to capture widespread consumer attention, making up just over 1% of the global smartphone market, according to The Financial Times.
Samsung’s Stronghold in the Foldables Arena
Samsung Electronics Co (OTC: SSNGY), a prominent player in the smartphone market, has heavily promoted its 5G Galaxy Z series this year, banking on the belief that foldable devices could constitute a significant share, accounting for around one-third of smartphones priced above $600 by 2027.
Other Players Eyeing Foldables
Companies like Motorola Solutions Inc (NYSE: MSI), Huawei, and its spin-off Honor are also pinning their hopes on foldable phones to reinvigorate a smartphone market that faced its worst year in over a decade.
Current Scenario and Market Reception
While foldables are gaining traction in premium segments in specific markets such as the US and China, they are yet to reach the mainstream audience. Counterpoint Research estimates a sale of approximately 16 million foldable phones in 2023, accounting for a mere 1.3% of the expected 1.2 billion smartphone sales globally for the year.
Challenges and Consumer Perceptions
Concerns surrounding pricing, reliability, and utility are significant deterrents, raising questions about market saturation. The higher return rates for foldables compared to traditional smartphones indicate potential hurdles in securing repeat purchases.
Market Performance and Future Predictions
Chinese manufacturers, particularly Huawei and Honor, have witnessed a more receptive market for foldables in China, with sales doubling in the third quarter of 2023 compared to the same period last year. Meanwhile, Samsung continues to lead the global foldables market, maintaining a dominant 73% share in a recent quarter, as per Canalys.
Recent Shipment Reports and Future Projections
A report by Display Supply Chain Consultants (DSCC) revealed a significant rise in foldable smartphone shipments, reaching 7 million in Q3 2023, driven by the launches of Samsung Z Flip 5 and Z Fold 5. Despite this surge, the forecast suggests a 35% drop in demand for foldables in Q4 2023, attributing it to lower-than-expected shipments from Samsung and potential delays in new product launches.
Projected Growth and Key Players for 2023
Foldable smartphone shipments are expected to grow by 23% to 15.8 million units by the end of 2023. Samsung’s share may reduce to 42%, while Huawei and Honor are anticipated to gain significant ground in Q4 2023, as per the report.
The Future of Foldables
While foldable phones continue to be a source of innovation, challenges surrounding durability, pricing, and consumer confidence need addressing for widespread adoption in the smartphone market.