Global Foldable Smartphone Shipments Drop in Q3 2024, Yet Customer Satisfaction Remains High for Book-Type Design; Report Highlights Two Key Reasons for Decline

Challenges Faced by the Foldable Smartphone Market in Q3 2024

The foldable smartphone segment has emerged as a fascinating innovation in the tech landscape, but its journey has been anything but smooth. In the third quarter of 2024, major brands like Samsung struggled significantly, experiencing a notable decline in shipments, marking a shift in market dynamics. Samsung, which once commanded a significant portion of the foldable market, faced a steep 21% decrease in shipments compared to the same period last year. This downturn has allowed competitors to gain ground, leading to an overall drop in shipments across the market compared to Q3 2023.

Market Overview: Shipment Trends and Key Players

According to a recent report from Counterpoint Research, while Samsung continues to lead with a substantial 56% share of global shipments, its market dominance is being challenged. Huawei has seen its shipments increase from 13% to 15%, showcasing its growing influence in this sector. Notably, Xiaomi showcased tremendous growth, achieving a staggering 185% increase in shipments when compared to Q3 2023.

Despite these gains, the overall foldable smartphone market reported a 1% decline in shipments year-on-year, marking a surprising first for this segment during the third quarter. A contributing factor to this downturn was the lukewarm reception of Samsung’s Galaxy Z Fold 6 and Galaxy Z Flip 6, with few compelling reasons for users to upgrade from older models.

Barriers to Mainstream Adoption

The most significant hurdle currently facing the foldable smartphone market is the high price point, which discourages potential buyers. Jene Park, a senior analyst at Counterpoint Research, highlighted that the transition from niche products to mainstream devices has presented several challenges. Although user satisfaction among current foldable smartphone owners is notably high, the overarching issue of affordability prevents wider market adoption.

“The global foldable market appears to have entered a transitionary phase where it is facing challenges as it progresses from a niche segment to the mainstream. User satisfaction is particularly high with book-type foldable devices, but the prohibitively high prices remain the biggest obstacle to mass adoption. If manufacturers give serious consideration to improving price accessibility, along with achieving further technological reliability and enhancing consumer perceptions, this phase can be overcome.”

Looking Ahead: The Future of Foldable Smartphones

Currently, it seems that brands like Samsung and Huawei will face difficulties in reducing component costs sufficiently to make their devices more competitively priced. The forecasts suggest that despite innovations, foldable smartphones may continue to exist on the fringes of the market in the coming years. However, there remains hope that upcoming developments could surprise us, leading to broader acceptance and broader sales.

For further information, refer to the in-depth insights provided by Counterpoint Research and additional analyses at Wccftech.