Why Everyone Is Folding Their Phones... 'Foldable' Phones Selling Well Despite the Recession

Smartphone Market Down 1.1% This Year... Foldables Up 50.5%

Although the growth of the smartphone market is slowing down this year, foldable smartphones are expected to grow significantly despite the downturn. As a result, not only Samsung Electronics, the pioneer of foldables, but also major manufacturers are rushing to release products.

Global market research firm IDC forecasted that worldwide smartphone shipments will reach approximately 1.1928 billion units this year. This represents a 1.1% decrease compared to the previous year. Last year, global smartphone shipments were about 1.21 billion units, the lowest since 2013. This year, the market is expected to shrink even further.

[Image source=Yonhap News]

While the smartphone market is stagnant, foldable smartphones are moving in the opposite direction. IDC projected foldable smartphone shipments to reach 21.4 million units this year, an increase of about 50.5% compared to 14.2 million units shipped last year. The foldable smartphone market is expected to grow at a compound annual growth rate of 27.6% until 2027, reaching 48.1 million units. Market research firm Display Supply Chain Consultants (DSCC) reported that seven brands released 19 foldable smartphone models last year, and this year, 10 brands are expected to launch at least 37 products.

Consumer demand is also significant. According to a survey by market research firm Counterpoint Research, 28% of U.S. smartphone users said they prefer foldable smartphones for their next purchase. Among high-income respondents earning over $10,000 per month (approximately 13.15 million KRW), 41% indicated a high likelihood of choosing a foldable smartphone as their next device.

Despite the smartphone market downturn, the growth trend in foldables is attracting major smartphone manufacturers. Currently, Samsung Electronics is leading the foldable market. According to TrendForce, Samsung held about 82% of the foldable smartphone market share last year. Chinese manufacturers such as Huawei, Oppo, and Vivo are following Samsung closely. Google, Apple, and Xiaomi are also expected to join the foldable competition soon.

Samsung, the leader in foldables, is expected to release the Galaxy Z Fold and Flip 5 around August. The overseas IT media SamMobile, citing tipster SuperRoader, revealed a Flip 5 model with a larger cover display and a changed camera layout. Huawei plans to launch the foldable smartphone Mate X3 in China on the 8th. Unlike its predecessor, which folded outward, it adopts an inward folding method similar to the Fold 4. Weighing 239g with a thickness of 5.3mm, it directly challenges the Fold 4 (263g, 6.3mm). Vivo is preparing to release the Vivo X Fold 2 and Vivo X Flip. With Google and Apple joining, the market is expected to expand further. Overseas IT media such as The Verge recently predicted that Google will release its first foldable smartphone, the Pixel Fold, around June. Apple’s foldable smartphone release plans have not been specifically disclosed. However, having recently acquired multiple patents related to foldable technology, it is anticipated that Apple will soon enter the foldable market.