Global Foldable Smartphone Shipments Declined In Q3 2024, Despite High Customer Satisfaction With Book-Type Form Factor; Report Mentions Two Reasons For This Slump

Foldable smartphones are a unique addition that occupy a higher pricier tier alongside their ‘candy bar’ shaped counterparts, but the big names struggled to get the ball rolling in the third quarter of 2024. Samsung faced the biggest loss during this period, dropping 21 percentage points in shipments compared to its dominant position a year ago, with other players occupying the new positions. Even then, the overall tally was lower than how the market performed in Q3 2023, with a new report mentioning two reasons why this decline happened.

A new report states that the foldable smartphone market is facing challenges when moving to the mainstream category, with ‘prohibitively high prices remain the biggest obstacle’

First, let us come to the statistics. Counterpoint Research has shared that despite Samsung losing its market share to players like Huawei, the Korean giant maintained the first position with 56 percent of global shipments in Q3 2024. In second place, we have Huawei, whose overall shipments increased from 13 percent to 15 percent in the latest quarter, with Xiaomi experiencing the largest success, garnering a whopping 185 percent shipment boost compared to Q3 2023.

Despite the success attained by various players, the report states that global foldable smartphone shipments witnessed a 1 percent shipments decline compared to the same period a year ago, and it was the first time that this market ever saw a slump in the third quarter. One reason is Samsung’s underwhelming Galaxy Z Fold 6 and Galaxy Z Flip 6 launch, with both devices offering little to no incentive to upgrade over the previous-generation lineup.

However, perhaps the biggest setback is the high price, which prevents customers from making a purchase. Senior analyst at Counterpoint Research Jene Park says that the global foldable smartphone market is in a transitionary phase, where going from a niche category to a mainstream one comes with its host of problems. Customers who have upgraded to these book-type foldable devices show a high satisfaction level, but the high price ultimately pushes back a large percentage of buyers.

“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.”

Given how foldable smartphones have yet to deliver the same traction as regular-shaped handsets, we doubt that manufacturers like Samsung and Huawei will find ways to reduce component costs and offer successive models at a competitive price. In short, we believe that this category will remain somewhat niche in the years to come, but we hope to be surprised in the near future.

News Source: Counterpoint Research