Price remains the main obstacle for foldable devices
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Samsung will unveil its next generation of foldable devices this week, but high prices are the main obstacle keeping them from reaching users.
The world’s largest mobile phone maker will also have to try to regain its lead in the foldable device market, which it lost for the first time in the first quarter of this year.
South Korean group Samsung will unveil the future Galaxy Z Fold6 and Flip6 on Wednesday in Paris at its second Unpacked 2024 event. The company has not yet officially confirmed the names of the devices.
According to several leaks and reports, the improvements to both smartphones include a flat-edged design similar to the recent Galaxy S24 series, improved cameras, and a more powerful Galaxy AI platform, which was first integrated into the S24 devices. An integrated S-Pen on the Fold6 is not expected.
However, despite the symbolic nature and necessary upgrades of foldable devices, their price remains the main sticking point for consumers considering the switch to the still-niche form factor, hampering the sector’s market growth, analysts said.
Foldable devices remain more expensive than traditional smartphones, mainly due to their more complex design. The Galaxy Fold, in particular, has been selling for $1,799 for the past two years, with Huawei’s device being even more expensive.
By comparison, Samsung’s latest premium device, the Galaxy S24 Ultra, costs $1,299 and the iPhone 15 Pro Max costs $1,199. The Flip, meanwhile, presents a more affordable option at $999, on par with Samsung’s entry-level devices and Apple’s latest series.
“Despite the continued development of foldable hardware… the market has not seen the growth expected,” said Aaron West, senior smartphone analyst at Omdia, an industry data tracking specialist. The National.
“High consumer costs remain a major barrier to more foldable phones entering the market. Any new foldable phone designs must address both this cost and the lack of use cases to make foldable phones more attractive to consumers.”
Additionally, consumers are taking note of improvements including dust and water resistance, more sophisticated hinges, screen durability, battery life, camera technology, software support, and devices becoming lighter and thinner.
“Continued improvements… indicate that foldable devices are becoming a serious category,” said Akash Balachandran, research director for mobile devices at the International Data Corporation. The National.
“Foldable smartphones typically fall into the premium and ultra-premium categories, which limits their reach and appeal. However, as average selling prices (ASPs) decline, we can expect significant sales growth, especially for foldable smartphones, which are already falling in price.”
Samsung loses its ‘foldable’ crown
Foldable smartphones remain a minor category in the overall smartphone market, but manufacturers have continually sought to introduce more of them to the market as consumer preferences evolve.
Their popularity has been mainly attributed to Samsung, which brought the category to the mainstream, starting with the original Galaxy Z Fold in 2019. The company followed up with the Galaxy Z Flip the following year, a smaller but also more affordable phone in an effort to attract more users.
Since then, Samsung has dominated the foldable category, with a market share that peaked at over 80% about two years ago.
However, a major shift occurred in the first quarter of 2024: Huawei now holds the largest market share for foldable devices, grabbing about 35% of the market, dethroning Samsung which held 23%, down sharply from 58% a year ago, according to a report from Counterpoint Research published in May.
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Upside and downside forecasts
While industry reports on the future of the foldable smartphone sector agree that growth will continue, projected numbers vary.
Overall, shipments in the global foldable smartphone market are expected to reach 25 million units in 2024, an increase of about 38% from 18.1 million last year, and increase further to 45.7 million by 2028, at a compound annual growth rate of 20.3%, according to IDC data.
Samsung also faces other notable brands that have their own foldable devices, including Oppo, Motorola, Google and Honor, Huawei’s former sub-brand that ranked third in the three months through March, according to data from Hong Kong-based Counterpoint.
Huawei’s growth has come mainly from its home territory of China, which is the preferred choice for consumers in the world’s second-largest economy, West said – despite the lack of Google services.
“Outside China, Samsung’s biggest competitor is Honor for its ultra-thin book-style foldable phones and Motorola for its more affordable Razr series of flip-style foldable phones,” he said.
Meanwhile, a separate report from TrendForce released in June predicts that Samsung’s market share will account for more than half of the market and retain the market lead in 2024, with Huawei in second place with about 31% market share.
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They would constitute the top tier of this year’s race, where shipments are expected to reach 17.8 million units, the Taipei-based research firm said.
This would represent only 1.5% of the overall smartphone market, but that figure is expected to reach around 5% by 2028, he added.
“It’s only a matter of time before consumers no longer see a major tradeoff in choosing a foldable device – but prices need to come down,” Balachandran said.
Updated: July 08, 2024, 08:55
News Source : www.thenationalnews.com
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