Date: 22/02/2024

Foldable phones: High price attrtibuted to slow growth of 11% in 2024

In 2023, global shipments of foldable phones reached 15.9 million units, with a 25% y-o-y growth taking 1.4% of the overall smartphone market. In 2024, TrendForce estimates shipments to reach 17.7 million units, expanding by 11% and slightly augmenting market share to 1.5%.

The sluggish pace of foldable phone adoption stems from two primary factors: recurring maintenance issues denting consumer confidence and the current pricing landscape failing to align with consumer expectations, diverting them towards traditional flagship smartphones.

The future trajectory of foldable smartphones hinges on cost optimization efforts. Standardization of key components like Ultra-Thin Glass (UTG) and hinges, coupled with increased production by Chinese panel manufacturers, promises to significantly reduce production costs, potentially accelerating market penetration.

Samsung maintains its dominant position in the market despite a slight decline in market share, while Huawei emerges as a formidable contender with a burgeoning market share of 12%. Xiaomi, Oppo, and Vivo trail behind, aiming to carve their niche in the evolving landscape.

Brands like Oppo and Vivo pivot their strategies away from smaller vertically folding devices towards larger horizontally folding models to address profitability concerns. In contrast, Huawei pushes forward with plans for a 5G-enabled small vertical folding device, with Honor poised to enter the compact foldable segment.

Despite widespread anticipation, Apple remains conspicuously absent from the foldable phone arena. While rumors swirl about Apple's exploration of essential components for foldable devices, its formal entry remains uncertain, yet potentially game-changing for market dynamics.

The trajectory of the global foldable phone market is marked by both promise and challenges. Potential entry of industry giants like Apple can redefine the smartphone landscape in the years to come.




Source: TrendForce

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