Global Foldable Smartphone Shipments Up 10 Percent in 2Q23

The global foldable smartphone market increased 10% YoY in the second quarter of 2023 to reach 2.1 million units, according to Counterpoint Research. This growth is in stark contrast to that of the global smartphone market, which showed a 9% decline in shipments during the quarter to reach 268 million units. Due to the prolonged Russia-Ukraine war and the ongoing high global inflation, the smartphone market is expected to grow sideways. Nevertheless, the foldable smartphone sector continues to exhibit robust and sustained growth.

The landscape in the Chinese market presents a particularly intriguing scenario. During 2Q23, shipments in the overall Chinese smartphone market slipped 4% to reach 61.9 million units, hurt by the recent economic challenges faced by the country, which led to a reduction in consumer spending. However, the Chinese foldable smartphone market achieved notable success, surging 64% to reach 1.2 million units. China now commands the largest share of the global foldable smartphone market, with a 58.6% share.

The rapid growth of the Chinese market is primarily attributed to the introduction of foldable products tailored for the Chinese market, coupled with a strong demand for these products. Significant momentum is building for the continued growth of the foldable market. This surge was driven by the introduction of key products such as the Huawei Mate X3, vivo X Fold 2, and vivo X Flip, primarily targeting the Chinese market. Additionally, the global launch of the Motorola Razr 40 and Razr 40 Ultra, further contributed to this growth trend. In 2Q23, China saw the launch of five new foldable products tailored for its market, while the global market outside China only saw two foldable product launches during the same period.

“We believe that these frequent product launches (along with the marketing effects that accompany product launches) are changing Chinese consumers’ perception of foldable products. Consequently, Chinese consumers can access a variety of foldable products more easily and frequently than any other market in the world. The continuous release of various foldable products is recognized as one of the important reasons why the Chinese foldable market has continued to grow significantly compared to other markets,” said Jene Park, Senior Analyst at Counterpoint Research.

The global foldable smartphone market will undergo significant changes in 2H23. Chinese manufacturers are expanding their presence internationally during this period, with notable releases including the HONOR Magic V2, OPPO Find N3 Flip, and the yet-to-be-named OnePlus foldable device. Notably, Samsung’s Galaxy Z Fold 5 and Galaxy Z Flip 5, considered to be some of the top-tier foldable offerings, were launched in August and are expected to capture a substantial market share in 2H23.

“The global foldable smartphone market is set to see significant growth in the 2H23, driven by the expansion of Chinese manufacturers. Although Samsung’s market share may dip due to increased competition, we believe that it will be a natural result. However, competition among manufacturers usually has the effect of increasing the size of the market for the product. We believe that the era of the mass foldable phone is expected to start in 2024, mainly led by Samsung and Huawei with their entry-level foldables. Entry-level foldables are expected to be priced around $600 to $700, making them more accessible to consumers,” added Park.