Report On Foldable Smartphones
A recent, unconfirmed report from China has sparked significant concern in the foldable smartphone sector. According to Ma Guangyu from 163.com, a prominent smartphone company is allegedly considering pulling out of the foldable market due to underwhelming performance. The report highlights that the growth of China’s foldable smartphone market has drastically slowed, posting just a 13.6% year-on-year increase in 2024. This growth rate is the lowest in the past two years, raising questions about the long-term viability of foldables as a mainstream product category.
Struggling to Maintain Profitability
The Chinese foldable market, which had been expected to maintain high growth following years of innovation, is now facing a slowdown that some companies find difficult to cope with. The report suggests that at least one major brand has decided to suspend its foldable smartphone plans for 2025 due to challenges in achieving profitability. The company in question is not named, but the analysis points toward two major players, Oppo and vivo, both of which have had long gaps between their last foldable releases. This has led to speculation that either of these brands might be pulling back from the foldable market, particularly given their recent struggles.
The Case of Xiaomi and Other Brands
For context, Xiaomi is one of the few companies to have actively pushed its foldable lineup in recent months. In July 2024, Xiaomi launched its Mix Flip and Mix Fold 4 models, with the Mix Flip marking the brand’s first international foldable release. However, reports indicate that Xiaomi’s foldable ambitions have not gone as smoothly as hoped. The Mix Flip failed to meet its target production of 500,000 units, managing only 460,000, while sales of the Mix Fold 4 lagged significantly, with fewer than 100,000 units sold. This poor performance, despite Xiaomi’s aggressive global push, suggests that consumer demand for foldables may not be as robust as initially anticipated, even for larger companies.
Oppo and vivo: The Quiet Giants
Meanwhile, Oppo and vivo, both of which have been relatively quiet on the foldable front, are seen as the brands most likely to cut back on their foldable strategies. Oppo last launched its foldable, the Find N3, in October 2023, marking its first foldable release in over a year. With this long gap, there is growing concern that Oppo may not be able to sustain interest in its foldable lineup, especially if the broader market does not exhibit stronger growth in the coming months.
Vivo, similarly, has been inactive in the foldable market since the X Flip was released in early 2023. Despite this, vivo has made some efforts to expand its foldable portfolio, with announcements for horizontal foldables such as the X Fold3 and X Fold3 Pro. Notably, the X Fold3 Pro marked a significant move as the company’s first foldable to be released in international markets, but it has yet to make a major impact on global sales.
New Entrants: Tecno and Infinix
On the other hand, brands like Transsion’s Tecno and Infinix have just launched their foldable models and are less likely to pull out of the foldable market anytime soon. Tecno’s Phantom V Fold2 and V Flip2, along with Infinix’s Zero Flip, were introduced with much fanfare, signaling that these brands are committed to building their foldable portfolios despite the market’s growing uncertainty. Given that these companies are still in the early stages of foldable product releases, it seems unlikely that they would make such drastic decisions this soon.
Market Growth: The 13.6% Dilemma
The foldable market in China saw just 2.23 million shipments in Q3 2024, according to the International Data Corporation (IDC). While the 13.6% year-on-year growth may seem positive at first glance, it is, in fact, the slowest growth rate in the last two years for foldable smartphones. The 2024 figure is far below the expectations of major smartphone manufacturers, who had hoped for much higher growth as foldables moved from a niche segment to a more mainstream offering.
This slow growth has raised two key questions. Is the foldable market reaching its saturation point, or is this a temporary slowdown due to external factors, such as global economic challenges, increased competition, or a lack of compelling innovation? Given the rapid technological advancements in the foldable sector in recent years, it’s possible that consumers are either hesitant about the high cost of foldable devices or are not yet convinced of their long-term value compared to traditional smartphones.
The Future of Foldables: A Critical Crossroad
While the folding smartphone market has undoubtedly captured the attention of tech enthusiasts, the question remains whether it can continue to scale into a significant consumer product category. With major brands like Samsung continuing to lead the charge in the foldable segment, many are watching closely to see if this report signifies a broader trend toward retreat or simply a temporary dip in the market cycle.
For companies like Oppo and vivo, which have yet to see substantial returns from their foldable product lines, it could be a make-or-break moment. If the market continues to grow at a slow pace, some brands might indeed consider scaling back their foldable efforts or halting production altogether. On the other hand, if the market rebounds and sees another surge in demand, foldables could quickly return to prominence as a key segment in the smartphone industry.
As the global foldable market faces these challenges, the coming months will likely be a crucial period for both manufacturers and consumers to determine whether foldables will remain a niche innovation or become the next mainstream device type in the smartphone world.
Conclusion
The foldable smartphone market is at a crossroads, with some of the biggest names in the industry reconsidering their place in this evolving segment. While Xiaomi, Oppo, and vivo have all faced significant hurdles in achieving profitability with their foldable devices, newer brands like Tecno and Infinix are just beginning to stake their claim. Whether foldables are facing a temporary setback or an irreversible decline remains to be seen. For now, the market is waiting to see which companies will double down on innovation and which ones will pull back from the foldable frontier.
FAQs
1. Why is the foldable smartphone market slowing down?
The foldable smartphone market in China has slowed due to various factors, including higher production costs, consumer hesitancy about the value of foldables compared to traditional smartphones, and the market’s potential saturation. Despite technological advancements, growth has fallen behind expectations, with a 13.6% year-on-year increase in 2024, the slowest in two years.
2. Which companies are considering exiting the foldable market?
Unconfirmed reports suggest that Oppo and vivo, two major Chinese smartphone brands, are likely to scale back or exit the foldable market. Both have had long gaps between their last foldable releases and have struggled with profitability in this segment.
3. How are Xiaomi’s foldable smartphones performing?
Xiaomi has pushed its foldable lineup internationally but has faced challenges in sales. The Mix Flip model, for instance, failed to meet production targets, and the Mix Fold 4 saw underwhelming sales. Despite aggressive marketing, the company has struggled to gain significant traction in the foldable market.
4. Are new brands still entering the foldable market?
Yes, brands like Tecno and Infinix are entering the foldable space with models like the Phantom V Fold2 and Zero Flip. These companies are still in the early stages of their foldable efforts and are less likely to pull back given their newness to the market.
5. What does the future hold for foldable smartphones?
The future of foldable smartphones remains uncertain. If the market continues to grow slowly or stalls, companies may reduce their investments in foldables. However, if consumer demand picks up or significant innovations emerge, foldables could become a more mainstream product category. The next few months will be critical for manufacturers’ decisions regarding their foldable strategies.
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