Analysts expect high growth rates ahead for the foldable smartphone market

Foldable smartphones are very much in their infancy. Samsung appears to be the leader right now with the Galaxy Z Fold 4 and Galaxy Z Flip 4 both expected to be released later this year, possibly in August or September. Samsung’s two foldable models both serve different purposes.

The Galaxy Z Fold series features an external screen and when the device is opened like a book, a larger tablet-sized screen is revealed. This is perfect for those working in the field who need both a phone-sized display and a larger screen. It also is great for those who like to find a comfortable place to sit down and stream video on a large display.

8.9 million foldable phones shipped last year for a 148% year-over-year gain

The Galaxy Z Flip line is a pocketable device that flips open to become a 6.7-inch smartphone. This form factor is better for those who just want to be able to keep a powerful handset in their pockets until it is needed. Both foldables have their place in the world. 

Led by Samsung, total foldable shipments reached 8.9 million units last year for an annual year-over-year increase of 148%. That compares to the 7% growth in overall phone shipments in 2021 revealing how important foldables are to the future of the smartphone industry.

The analyst added, “As the world continues to reopen, it brings new opportunities for smartphone vendors to provide products such as foldable smartphones that can fulfill consumers’ needs and desires.”

Another Canalys analyst, Toby Zhu, notes that the foldable form factor helps the overall smartphone market because of its appeal to high-end users and early adopters. Zhu says that Android manufacturers in the premium sector of the market have been struggling with shipments in the premium end of the market (phones costing $800 or more) with shipments in this segment down 18% since 2019.

Canalys says Android device makers need to work on foldables to compete with iOS in the premium space

The analyst says that during the same time period, premium iOS models costing $800 or more have risen 68%. “Google and the major Android device vendors must double down on their investments in differentiated hardware and state-of-the-art user experiences to keep appealing to high-end customers,” Zhu notes.

Yet another Canalys research analyst, Amber Liu, points out that thanks to Samsung, the supply chain for foldables has developed over the last few years. “While there are an increasing number of suppliers for foldable displays, hinges and other key components, device vendors are also highlighting innovative engineering solutions and product designs for a better user experience while constantly pushing down prices,” Liu said.

And as the years go by, the weight, thickness, and prices of foldable phones will drop which will help these phones catch on with the public driving growth of the sector. As a result, “the  leading players will start to flex their muscles in the ecosystem to leapfrog their competitors with advanced and differentiated experiences,” said Liu. Canalys sees the average selling price of foldables dropping from $2,000 in 2019 to $1,000 by 2024.