The Foldable Phone Market Cools in 2024: Samsung's Dominance Challenged

The Foldable Phone Market Cools in 2024: Samsung's Dominance ChallengedThe foldable phone market showed unexpected weakness in 2024. Despite the launch of flagship models like the Huawei Mate X series, Samsung Galaxy Z Fold/Flip series, and Google Pixel Fold, global shipments of foldable smartphones saw their first year-over-year decline in Q3, dropping by 1%

The Foldable Phone Market Cools in 2024: Samsung's Dominance Challenged

The foldable phone market showed unexpected weakness in 2024. Despite the launch of flagship models like the Huawei Mate X series, Samsung Galaxy Z Fold/Flip series, and Google Pixel Fold, global shipments of foldable smartphones saw their first year-over-year decline in Q3, dropping by 1%. This data, provided by Counterpoint Research, marks the end of six consecutive quarters of year-over-year growth, casting a shadow over a market once considered to have immense growth potential.

Samsung, the long-time leader in the foldable phone market, faces unprecedented challenges to its dominance. While still holding the top spot with a 56% market share, this represents a significant 14-percentage-point drop from the 70% share it held in the same period last year, with shipments plummeting by 21%. This sharp decline is primarily attributed to the underperformance of the Galaxy Z Fold6 and Z Flip6, especially the latter, which failed to meet sales expectations and hampered Samsung's overall performance in the foldable market.

Counterpoint researchers delved into the reasons behind Samsung's declining market share, pointing to strong pressure from competitors in various regions. In North America, Motorola, with its full range of sub-$1000 Razr clamshell foldables, poses a growing threat. The Razr series' price advantage successfully attracted price-sensitive consumers, diverting market share from Samsung's Galaxy Z Flip series.

Meanwhile, in Western Europe, HONOR, with its slim and light Magic V series book-style foldables, significantly impacted Samsung. The Magic V series' excellent design and lightweight build garnered positive reviews and sales in the experience-focused Western European market, further squeezing Samsung's market space. This demonstrates the need for Samsung to more aggressively address competition from different regions and price segments in its product strategy and market positioning.

Beyond the rise of Motorola and HONOR, other Chinese phone manufacturers are showing strong growth in the foldable phone market. The report indicates HONOR doubled its market share this quarter, rising from 5% to 10% and becoming one of the major drivers of market growth. Motorola and Xiaomi also saw their market shares increase by 7% and 6% respectively, highlighting the increasing competitiveness of Chinese manufacturers in the foldable phone sector and their gradual erosion of Samsung's market share.

Huawei, a Chinese smartphone giant, holds the second-largest market share at 15%, but its year-over-year growth was limited to only 2%, indicating that even industry leaders like Huawei need continuous innovation and adaptation to the rapidly evolving foldable phone market.

In conclusion, the Q3 2024 performance of the foldable phone market demonstrates that this market is not without its challenges. Samsung, once the undisputed leader, now faces strong competition from Chinese manufacturers. The rise of brands like Motorola and HONOR signifies an increasingly fierce competitive landscape where price, performance, and user experience will be crucial determinants of success. Samsung needs to reassess its product strategy and market positioning to adapt to the changing market environment and solidify its leading position. However, the strong momentum of Chinese phone manufacturers puts Samsung's dominance at risk, promising a more exciting and competitive future.

It's important to note that Counterpoint Research's report reflects only the Q3 2024 market situation and doesn't predict future trends. The foldable phone market is still in its early stages, and technological innovation and evolving consumer demands will significantly impact the market landscape. Future success will depend on who best grasps technological trends and meets increasingly diverse consumer needs. Therefore, Samsung and other manufacturers must continue investing in R&D and improving product competitiveness to secure a position in this market full of opportunities and challenges. For consumers, increased competition in the foldable phone market will undoubtedly lead to more choices and better value-for-money products.

Furthermore, the maturity of the supply chain is a significant factor. Counterpoint researchers mention that the maturing foldable device supply chain and reduced production costs allow more manufacturers to enter the market, intensifying competition. This is positive for consumers but means heightened competitive pressure for manufacturers, requiring continuous innovation to stand out.

In summary, the decline in the foldable phone market during Q3 2024 is not accidental but a result of multiple factors. Samsung's declining market share and the strong rise of Chinese manufacturers signal a future of intensified competition. Only continuous innovation will pave the way to success in this dynamic and challenging market.