Analysts predict that in 2024, the foldable phone market will witness an increase in shipments to approximately 17.7 million units. This represents an 11% growth rate, causing a marginal rise in the market share to 1.5%. However, the growth trajectory of foldable phones appears to be slowing down due to a couple of significant factors.
Consumer Retention and Maintenance Challenges
One of the key factors contributing to the foldable phone market’s deceleration is the low consumer retention rate. Many first-time users of foldable phones face frequent maintenance issues, which has led to a crisis of confidence in the product’s reliability. As a consequence, when considering replacing their devices, these users may favor high-end flagship smartphones over foldable phones.
Price Points and Sales Targets
The second factor hindering the growth of the foldable phone market is the current price points. The cost of foldable phones has not yet hit the ‘sweet spot’ for consumers, making it difficult to achieve sales targets based purely on pricing. These high price points have made it challenging for the foldable phone market to compete effectively with the traditional smartphone market.
Market Leaders
Despite the challenges, Samsung retains its position as the market leader in the foldable phone segment. However, it has witnessed a reduction in its market share, sliding from 80% in 2022 to under 70% in 2023. On the other hand, Huawei has experienced an increase in its shipments, which have risen to 12%, indicating a potential shift in market dynamics.
In conclusion, while the foldable phone market is expected to grow in 2024, several factors such as consumer retention and pricing challenges pose significant hurdles. Furthermore, the changing dynamics among market leaders suggest a potential reshaping of the market landscape in the coming years.
