Foldable Phones Market Report

1. Market Overview

Definition and Evolution: Foldable phones are smartphones equipped with flexible displays that allow the device to bend or fold, offering a larger screen in a compact form factor. Early concepts date back to the 2010s, but the first commercially available foldable smartphone was the Royole FlexPai launched in 2018​ androidauthority.com. Mainstream adoption began when Samsung introduced its Galaxy Fold in 2019​ dazeinfo.com, followed by other brands like Huawei’s Mate X in the same year. Since then, the foldable category has evolved into two main styles: a “book-style” phone that opens into a tablet-like display, and a “clamshell flip” phone that folds down into a smaller pocketable size.

 Figure: Examples of foldable phone form factors – a compact clamshell (left) and a larger book-style foldable (right)​

commons.wikimedia.org.

Market Size and Growth: The foldable phone market has grown rapidly from near-zero a few years ago to tens of millions of units annually. Globally, about 14.2 million foldable smartphones were shipped in 2022, up from roughly 9 million in 2021​ dazeinfo.com​ dazeinfo.com. This represented just about 1.2% of total smartphone shipments in 2022​ gsmarena.com, but year-over-year growth has been very high (over 50% in recent years). Analysts projected foldable shipments to reach around 21–22 million units in 2023​ gsmarena.com​ counterpointresearch.com, and continue climbing. In terms of value, foldables occupy the ultra-premium range – they accounted for ~7% of smartphones priced above $800 in 2022​ counterpointresearch.com. The market’s rapid expansion is expected to continue, with forecasts of 27%+ annual growth on average through 2027​ gsmarena.com. By that time, foldables could reach roughly 3–4% of the smartphone market (around 45–70 million units annually, depending on the scenario)​ gsmarena.com​ statista.com.

Market Segmentation: The foldable phone market can be segmented by brand, price segment, and region, each with distinct dynamics:

• By Brand: Samsung has led the foldable market since inception – in 2022 it shipped over 11 million foldables (nearly 78% of worldwide foldable shipments)​ dazeinfo.com​ dazeinfo.com. Huawei was the second-largest player with just under 2 million units (∼14% share) in 2022​ dazeinfo.com, mainly from its Chinese market sales. Other Chinese OEMs like Oppo, Vivo, Xiaomi, and Honor together contributed the remainder, each introducing their own foldable models​ dazeinfo.com. Motorola, for example, shipped an estimated 40,000 units of its Razr in 2022​ dazeinfo.com– a small share, but it helped revive the flip-style foldable category. Samsung’s early mover advantage and global distribution have kept it on top, though competition is intensifying. By 2023, Samsung’s share fell slightly (estimated around 66–70%​ trendforce.com) as Chinese brands gained ground, especially in their home market.
• By Price Segment: Foldable phones debuted at very high prices (the first Galaxy Fold launched at ~$1,980). There are two broad price tiers aligning with form factors: “book” style foldables (e.g. Galaxy Z Fold, Huawei Mate X series) typically priced around $1,500–$2,000+, and “flip” style foldables (e.g. Galaxy Z Flip, Motorola Razr) that launched closer to ~$1,000 or slightly below. Average selling prices (ASPs) have been trending downward as the technology matures and competition increases​ gsmarena.com. In 2023, Samsung and others introduced improved models without raising prices, and new entrants have pushed affordability – for instance, TECNO launched a book-style foldable at ~$1,099, roughly half the price of Samsung’s high-end foldable​ 9to5google.com. There are even reports of simpler foldable designs in some markets around the $500 range​ coolest-gadgets.com, signaling efforts to reach more price-sensitive consumers. Lower prices are gradually making foldables more accessible, though they remain premium devices overall.
• By Region: Adoption of foldable phones varies by region. China has emerged as the largest market for foldables, driven by strong domestic brands and consumer enthusiasm – by Q2 2023, China accounted for about 58.6% of global foldable smartphone shipments​ counterpointresearch.com. Chinese vendors like Huawei, Oppo, and Vivo primarily sell in China, fueling growth there (Chinese foldable shipments jumped 64% YoY in Q2’23 even as the overall Chinese phone market shrank​ counterpointresearch.com). In contrast, Samsung dominates foldable sales in Western markets (North America, Europe, Korea), since many Chinese models are not available globally. The United States and Europe have seen growing interest, but actual uptake is more modest – foldables remained under 2% of total smartphones in these regions in 2022. Notably, over half of foldable sales in 2022 were in China, while Samsung’s foldables have been “regionally concentrated” in markets like Korea and Europe​ displaysupplychain.com​ displaysupplychain.com. Going forward, broader regional expansion (Chinese OEMs entering global markets, and Samsung pushing into Asia) could spread adoption more evenly worldwide.

2. Key Players & Competitive Landscape

Several manufacturers now compete in the foldable phone arena, but the landscape is still led by a few key players:

• Samsung: Samsung Electronics has been the pioneer and market leader in foldables since 2019. As of 2022, Samsung held roughly 70–80% of the foldable market share globally​ dazeinfo.com, far outpacing any rival. Its Galaxy Z Fold and Z Flip series (now in fifth generation as of 2023) showcase Samsung’s competitive advantages: in-house OLED display technology (Samsung’s foldables use its Ultra-Thin Glass displays), a refined hinge mechanism after multiple iterations, and a deep software ecosystem (One UI) optimized for multi-window multitasking. Samsung’s scale and first-mover experience have allowed it to continually improve durability and user experience – for example, by adding water resistance (IPX8) to its foldables ahead of others and increasing the rated lifespan to ~200,000 folds. The company’s latest models (Galaxy Z Fold5, Z Flip5) introduced a new hinge that minimizes the screen gap when folded and a less visible crease, keeping Samsung at the cutting edge of design. However, Samsung faces rising competition, and its foldable sales are still largely concentrated in premium markets​ displaysupplychain.com. Recent reports indicate Samsung’s foldable growth slowed in 2024, suggesting it may need further innovation or price cuts to maintain dominance​ displaysupplychain.com​ displaysupplychain.com.
• Huawei: Huawei was one of the first entrants (launching the Mate X in 2019) and remains a dominant foldable player in China. In 2022, Huawei was the second-largest foldable vendor globally, shipping just under 2 million units​ dazeinfo.com. Despite U.S. sanctions limiting its international reach (no Google services, 5G chipset constraints), Huawei has pushed technological innovation in foldables. It pioneered an outward-folding screen with the first Mate X, then shifted to an inward fold with subsequent Mate X2/X3, focusing on sleeker hardware – the 2023 Mate X3, for instance, is remarkably thin (just ~11mm folded) and features IPX8 water resistance​ techradar.com, matching Samsung in durability. Huawei’s camera prowess is also a differentiator (its foldables often have flagship-level camera systems). In China, Huawei’s brand strength and product quality have kept it highly competitive – by Q1 2024, Huawei even briefly overtook Samsung in quarterly foldable shipments (helped by strong Mate X3 sales and Samsung’s absence in the Chinese market)​ counterpointresearch.com​ imrknowledgecluster.com. Huawei’s key challenge is the international market, where it’s hampered by sanctions; but domestically it continues to innovate (even teasing tri-fold concepts) and capture a large share of China’s premium segment.
• Motorola: Motorola (Lenovo) revived its iconic Razr brand with a foldable flip phone in 2019, making it one of the early players in the modern foldable trend. Motorola targets the clamshell foldable segment, directly competing with Samsung’s Z Flip. While its global volume is modest (approx. 40k units in 2022​ dazeinfo.com), the Razr has strong brand recognition and appeals to consumers who favor the nostalgia and pocketability of a flip phone. The latest Motorola Razr models (Razr 40 Ultra/+/Razr 2023) feature high-end specs and one of the largest external displays on a flip phone, as well as a hinge that folds completely flat with an almost invisible crease. Motorola has leveraged its partnership with carriers (especially in the U.S.) to promote the Razr, though it faces stiff competition from Samsung’s Flip which outsells it. Motorola’s competitive angle is differentiation – e.g., offering a slightly more affordable standard Razr model alongside the flagship to broaden its appeal. Overall, Motorola holds a niche but important spot in the foldable market, and it continues to iterate to close the gap with Samsung in the flip segment.
• Chinese Brands (Oppo, Vivo, Xiaomi, Honor): A wave of Chinese OEMs have entered the foldable race, mainly focusing on the domestic market initially. Oppo launched the Find N series with a compact book-style foldable in late 2021, emphasizing an almost creaseless display and wider aspect ratio; in 2023 Oppo (via its sister brand OnePlus) brought the OnePlus Open to international markets, offering a competitive alternative to Samsung’s Fold at a lower price. Xiaomi introduced the Mi Mix Fold (2021) and Mix Fold 2/3, known for having some of the thinnest designs and largest displays (the Mix Fold 3 boasts one of the biggest foldable screens)​ coolest-gadgets.com. Vivo released the X Fold series and a Flip model in China, also focusing on high-end specs like Zeiss-branded cameras. Honor (formerly part of Huawei) released the Magic V and Magic Vs, delivering premium foldables with the advantage of Google services (for global models) and has signaled expansion into Europe with these devices. These Chinese manufacturers often compete on innovative hardware and price: for example, many adopted a teardrop-style hinge that reduces crease visibility before Samsung did, and they tend to price foldables slightly lower in China to drive adoption. Collectively, non-Samsung/OEMs have been growing their share – by 2023, Chinese vendors together captured nearly 30%+ of the foldable market (with Huawei and Honor leading among them)​ oled-info.com. Their competitive challenge is expanding outside China; some, like Oppo/OnePlus and Honor, are now tentatively entering Europe and India with foldables, which could intensify the global competition.
• Google: In 2023, Google joined the foldable market with the Pixel Fold, its first foldable phone. While Google is not yet a volume leader, its entry is strategically significant – it validates the category and brings Google’s software expertise to foldables. The Pixel Fold differentiates with a very wide outer display (more usable as a regular phone when closed) and Google’s famed camera software in a foldable form. Its strength lies in a clean Android experience and exclusive software features tuned for the big screen (e.g. improved tablet mode for apps, Google’s own apps optimized for dual-screen use). Google’s competitive position is as both a device maker and the steward of Android, which allows it to drive foldable-specific software enhancements (like Android 12L adjustments) that benefit all OEMs​ thenextweb.com. While Pixel Fold’s market share is small, Google’s involvement pressures other Android OEMs to keep improving their foldable offerings. It also sets the stage for future Pixel foldables or perhaps a foldable Pixel Tablet, expanding choices for consumers and potentially attracting more app developer attention to foldable form factors.

Overall, the competitive landscape in foldables is still top-heavy. Samsung remains the clear global leader in shipments​ dazeinfo.com, with Huawei (and now Honor) dominating the Chinese market. Motorola holds a niche in the flip segment, and Oppo/Xiaomi/Vivo/Honor are rapidly iterating to erode Samsung’s lead, especially in Asia. A key competitive factor is technological differentiation: Samsung leverages its display tech and multi-generation know-how, Huawei and others push boundaries in design (thinness, camera, new form factors), and each tries to claim durability or usability advantages. For example, Samsung’s use of ultra-thin glass and IPX8 water-proofing, Huawei’s use of lighter materials and periscope cameras, or Oppo’s minimized screen crease. Another factor is ecosystem and software – Samsung’s early investment in foldable software features versus Google’s direct integration via Android updates. In the coming years, competition is expected to intensify with more brands entering (including rumors of Apple and other players), which will drive faster innovation and possibly better pricing for consumers.

3. Technological Advancements

Continuous innovation in hardware and software is at the heart of foldable phones’ development. Key technological advancements include improvements in display materials, hinge mechanisms, durability, and software optimization:

Display Technology Innovations

Foldable devices are made possible by flexible display technology, primarily using flexible OLED panels. Early foldable screens used plastic polymer (polyimide) layers, which were bendable but prone to scratches and creases. A major innovation was the adoption of Ultra-Thin Glass (UTG) as a top layer for foldable displays. Samsung first introduced UTG in the Galaxy Z Flip (2020) to give the screen a glass-like hardness and smoother feel, dramatically improving durability over the purely plastic covers​ reddit.com. Modern foldables from Samsung, Huawei, Motorola and others now widely utilize ultra-thin glass instead of soft plastic. This material is just a few tens of microns thick, allowing it to bend while maintaining rigidity. According to TrendForce, over 90% of new foldable models use UTG, as it results in a more durable screen with a less visible crease​ displaydaily.com. UTG’s adoption has also spurred a growing supply chain – specialty glass from firms like Schott and Corning – which is scaling up to meet demand​ displaydaily.com. Beyond UTG, display resolution and quality have improved: most foldables feature high-resolution AMOLED displays with vibrant colors and even high refresh rates (120Hz) on their flexible screens.

Looking ahead, manufacturers are experimenting with new display types for foldables. One area is micro-LED or other advanced display tech that could eventually replace OLED to offer higher brightness and longevity without burn-in (though micro-LED is not yet commercially in phones). Another trend is rollable and extendable displays – prototypes have shown screens that can unfurl from a regular phone size to a larger tablet display without a hinge. While not yet mass-produced, such rollable display concepts (teased by companies like TCL, LG, and Oppo) hint at future form factors beyond the current folding designs. Overall, display technology continues to advance, focusing on making foldable screens more durable (less prone to creasing or damage) and improving visual quality to match or exceed traditional flat displays.

Hinge Mechanisms and Durability

The hinge is a critical component in any foldable phone, and its design has seen significant improvements over generations. Early foldable hinges were complex and sometimes fragile – for example, the first Galaxy Fold in 2019 had issues with debris ingress causing screen failures. Since then, manufacturers have re-engineered hinge mechanisms for smoother operation and longevity. Many modern hinges use multi-link or teardrop designs that allow the display to fold more gently, reducing stress on the panel. This “water-drop” hinge approach (used by Huawei, Oppo, Motorola and others) creates a gap inside the fold so the screen forms a wider radius curve, minimizing the crease on the display. Samsung initially used a tighter radius hinge (leading to a more visible crease and a small gap when closed) but by the 2023 Z Fold5/Flip5, Samsung also introduced a new hinge that narrows the gap significantly and improves the crease appearance.

Durability has markedly improved. Most foldable hinges are now tested to withstand hundreds of thousands of fold cycles – typically around 200,000 opens/closes (equivalent to ~5 years of use at 100 folds per day) without failure. Some brands claim even higher: for instance, Oppo advertised its Find N2 hinge survived 400,000 folds in testing. To achieve this, hinges often include robust materials like aerospace-grade aluminum and stainless steel, and some have innovative features like brushes or caps to keep dust out of the mechanism (a feature Samsung implemented in the Z Fold2 onward). The use of carbon fiber or other composites for internal components has also helped reduce weight while maintaining strength.

Another leap has been the addition of water resistance. Foldable phones historically were difficult to seal against water due to moving parts, but Samsung managed an IPX8 rating (water-resistant up to 1.5m) on its Fold3/Flip3 in 2021. Huawei’s Mate X3 in 2023 also came with IPX8 water resistance​ techradar.com. This means the hinge and internal components are engineered with sealing and corrosion-resistant coatings to survive accidental splashes or dunks, a significant durability improvement. (Dust resistance is still a challenge – hence the “X” in IPX8 – but future designs may tackle that as well.) Manufacturers are also refining the mechanical feel of the hinge: newer hinges can hold the screen at various angles (enabling “flex mode” uses), and they open/close more smoothly, often with less noise or wobble. All these advancements address early adopter concerns about fragility. As a result, consumers are gaining confidence that modern foldables can handle everyday use without extreme care – a crucial factor for broader adoption.

Software Optimization for Foldable Displays

Foldable phones not only require hardware innovation but also software adaptation to take advantage of their unique form factors. A key development on this front was Google’s release of Android 12L, a special version of Android tailored for large and foldable screens​ thenextweb.com. This introduced interface optimizations such as a persistent taskbar for easier multitasking, improved split-screen support, and APIs for app developers to seamlessly adjust layouts when the screen size changes (for example, when unfolding a device from phone-sized to tablet-sized). These OS-level enhancements, carried forward into Android 13 and 14, have made foldables much more user-friendly by ensuring apps scale correctly and use the extra screen space effectively.

Device makers also add their own software features. Samsung’s One UI, for instance, offers “Flex mode” which splits content when the device is half-folded (turning one half into a viewing area and the other into controls – useful for video calls, camera use, etc.), and Multi-Active Window to run three apps simultaneously on the large inner screen. Many foldables allow dragging and dropping content between windows, floating video players, and other productivity tricks inspired by PC interfaces. These features turn a foldable into a mini-tablet or even laptop-style device for power users.

App developers have been gradually optimizing their apps for foldables as well. Companies like Microsoft and Google have updated their productivity apps (Office, Gmail, YouTube, etc.) to support dual-pane layouts or continuity (e.g., an app seamlessly expands from the cover screen to the big screen when opened). For example, an email app might show the inbox on one half and an open message on the other when unfolded, improving usability. Software continuity is an important aspect: users expect that if they start an activity on the small exterior display, it instantly and elegantly enlarges on the interior display when they unfold the phone (and vice versa). Early foldables had some hiccups here, but now this hand-off is largely smooth on major platforms.

Another area of software advancement is camera and multimedia use. Foldables allow novel use-cases like using the rear cameras for selfies (by using the cover screen as a viewfinder) or propping the half-folded device on a table for video capture. Camera apps and others have added modes to exploit this (Samsung’s camera app, for instance, shifts controls to the lower half when the device is tented). UX design for foldables is now a focus for many developers: gaming companies are exploring adaptive UIs, and multi-panel experiences (like reading a comic page with a tablet-like view). The collaboration between hardware and software teams – including Google working closely with OEMs – has improved the overall foldable experience significantly since the first generation. While not all third-party apps are fully optimized yet, the situation is improving with each Android release. In summary, software optimization has transformed foldables from gimmicky prototypes into genuinely productive devices, enabling features like true multitasking and enhanced media consumption that capitalize on their hybrid phone-tablet nature.

4. Consumer Demand & Adoption

The consumer response to foldable phones has evolved as devices improve and prices gradually come down. This section examines price trends, consumer sentiment and preferences, popular use cases, and remaining barriers to adoption:

Price Trends and Affordability: High pricing has been one of the biggest barriers for consumers. Initial foldable models were extremely expensive – often launching around $1,500 to $2,000 – putting them out of reach for many buyers. Over the past few years, prices have started to soften. Samsung’s Galaxy Z Flip series was a notable step to a (relatively)affordable foldable at ~$999, and subsequent generations have largely maintained or slightly lowered price points while offering better specs. Competition is also driving prices down: for example, in 2023, Samsung’s foldable ASP (average selling price) declined as it offered more bang for the buck, and companies like TECNO and Motorola introduced foldables near or below the $1,000 mark​ gsmarena.com​ 9to5google.com. In some markets, foldables are now available on contract subsidies or trade-in deals, effectively reducing upfront cost for consumers. There is also a trend of offering “last year’s” foldable at a discount once new models launch, making older models more accessible. That said, foldable phones remain premium products – the latest flagship foldables still cost about 50-100% more than a comparable slab smartphone. Broader adoption likely hinges on reaching lower price tiers (e.g., mid-range foldables in the sub-$800 range). The appearance of a $500-$700 foldable (perhaps with a smaller screen or cheaper materials) would be a potential game-changer for mass market, and at least one brand has signaled moves in that direction​ coolest-gadgets.com. For now, consumers interested in foldables must be willing to pay a premium, though the overall price trend is slowly downward, improving affordability year by year.

Consumer Sentiment and Preferences: Consumer interest in foldables is notable, especially among tech enthusiasts and premium buyers. Surveys show that a significant portion of users are intrigued by the form factor. In the United States, for example, 28% of current smartphone users said they are highly likely to choose a foldable as their next device​ counterpointresearch.com– a remarkably high figure for a new category. Another 16% were somewhat likely, indicating that nearly half of users would consider a foldable given the right conditions​ coolest-gadgets.com. Preference can depend on demographics: early foldable adopters tend to be tech-savvy, higher-income consumers (in the US, those with monthly income >$10k showed the greatest likelihood to buy a foldable)​ counterpointresearch.com. There are also interesting differences in design preference. Clamshell “flip” style foldables have a slight edge in popularity, as they combine nostalgia and practicality – in one survey, 49% of respondents favored the flip-type design versus 35% favoring the book-type foldable​ counterpointresearch.com. Many find the flip phones “fun” and compact, appealing to style-conscious buyers, while the larger book-style is preferred more for productivity and by users who want a tablet-like experience. Brand perception also influences consumer demand: Samsung is the most preferred brand for foldables (46% of interested US consumers picked Samsung), but notably 39% picked Apple as their preferred brand for a foldable​ counterpointresearch.com​ counterpointresearch.com– even though Apple hasn’t released one yet. This suggests a sizable group of iPhone users are waiting for an Apple foldable rather than switching to Android. Overall, sentiment is increasingly positive as newer foldables prove their usefulness; however, many consumers are taking a “wait-and-see” approach until prices drop further or durability is unquestionably proven.

 Figure: Consumer survey (US, 2022) – Left: Willingness to buy a foldable for next phone (28% “most likely”, 16% “somewhat likely”)​

counterpointresearch.com. Center: Preferred foldable design (flip-type 49%, book-type 35%)​ counterpointresearch.com. Right: Top preferred foldable phone brands (Samsung 46%, Apple 39%, Motorola 6%)​ counterpointresearch.com​ counterpointresearch.com.

Use Cases and Productivity Benefits: One reason consumers are drawn to foldables is the promise of new use cases and improved productivity. A foldable phone can essentially serve as both a phone and a tablet, allowing users to carry one device instead of two. This is highly attractive for professionals and power users: you can open up a foldable to review spreadsheets, edit documents, or multitask with multiple apps side-by-side in ways that are impractical on a small standard phone screen. For instance, a user can attend a video meeting on one half of the screen while jotting notes or checking email on the other. Mobile gamers and video watchers also benefit from the larger real estate – gaming on a tablet-sized screen or watching movies in a more immersive format, yet still pocketing the device afterward. Multitasking is a key benefit frequently cited: with features like split screen and floating windows, foldables enable a level of productivity akin to small laptops. Creative users enjoy foldables for sketching or photo editing on the go (some foldables support stylus input, turning them into mini drawing tablets). Apart from work and creativity, there are everyday conveniences: the phone can act as its own stand (useful for hands-free video calls or capturing group photos by propping the device half-open). The selfie camera use is improved by using the high-quality rear cameras with the cover screen preview – yielding better selfies and vlogs. Moreover, foldables are seen as luxury lifestyle devices that offer a “wow” factor – opening a phone into a tablet still has a novelty that can be a conversation starter. Enterprises have also taken note: Samsung reported a 105% YoY increase (in 2022) in foldable phones sold to enterprise customers for business use, as companies equip employees with devices that enhance mobile productivity​ dazeinfo.com. In summary, foldable adopters often cite the versatility and efficiency gains – it’s a phone when you need convenience, and an expanded canvas when you need to read, watch, or work.

Adoption Barriers: Despite positive interest, several barriers have kept foldables as a niche (albeit growing) segment. Price remains the number one hurdle – many consumers simply find foldables too expensive relative to what they’re getting, especially when excellent non-folding smartphones are available for half the price. Until the cost premium narrows, a large portion of users will stick to traditional phones. Durability concerns are another significant barrier. Although technology has improved, some consumers are still wary of the foldable screen’s longevity – worries about the display crease, the possibility of the screen protector peeling (a well-publicized issue in first-gen units), or the hinge breaking over time. High-profile incidents (like the original Galaxy Fold’s screen failures) and anecdotes of screens cracking or denting have made cautious buyers hesitant. Even today, buyers often ask: will the folding mechanism hold up after a year or two of heavy use? This doubt causes many to wait for further refinement. There’s also a perception of fragility – foldables are generally seen as less rugged than a typical glass slab phone (they’re not dust-proof, and a sharp object pressing the foldable screen can damage it more easily than hardened glass would).

Another barrier is user habit and utility: some consumers question whether a foldable is truly useful for them or just a gimmick. If someone primarily uses their phone one-handed on the go, a foldable’s need to open up for the big screen might be a hassle rather than a benefit. The thicker, heavier form when folded is also a slight inconvenience. In surveys, even interested consumers note that while foldables are cool, they’re not a “must-have” – the status quo candybar smartphones already satisfy their needs (great cameras, big enough 6–7 inch screens, etc.). As one industry analysis put it, “durability concerns and [unclear] utility have…resulted in limited adoption” to date​ counterpointresearch.com. Additionally, limited availability of some models (many Chinese foldables aren’t sold globally, and no foldable option for iOS users yet) constrains who can buy them. Software compatibility, while improving, can still be an issue if certain apps don’t render correctly on the unique aspect ratios or if users encounter bugs in the adaptive UI – these edge cases can frustrate early adopters. Lastly, for some, the learning curve or change in usage pattern (carrying a thicker device, unfolding for some tasks) is a mental barrier. However, as newer generations address durability and more people see foldables in daily use, these concerns are gradually easing. Many analysts believe that overcoming the price barrier and demonstrating long-term durability are key to unlocking the next wave of consumer adoption for foldable phones.

5. Market Challenges & Opportunities

As the foldable phone market develops, it faces several challenges that could slow growth, but also presents significant opportunities for innovation and expansion. Here we outline the key hurdles and the promising avenues ahead:

Key Challenges

Despite the buzz, foldable phones still face technical and market challenges that manufacturers must navigate. One major challenge is the high manufacturing cost of foldables. Flexible OLED displays and ultra-thin glass are more expensive to produce than conventional screens (with lower yields and more complex processes), and the intricate hinges add mechanical complexity. This keeps device prices high and compresses profit margins unless priced at a premium. The complex design also means repairs can be costly, raising concerns for both consumers and retailers (who may face higher warranty claims).

Durability and quality control remain challenges as well. Even with improvements, foldables must balance being thin and light with being robust. Issues like screen crease, hinge wear, and vulnerability to particles are engineering headaches. For example, ensuring an absolutely dust-proof hinge with moving parts is extremely difficult – a few grains of sand could still spell trouble. Some manufacturers have had to delay launches or do additional testing (as Samsung did after the first Fold’s hiccups) to ensure reliability. Any widely publicized durability failure can set back consumer confidence in the whole category.

Another challenge is software adaptation and user experience consistency. While Android and major apps support foldables, not every app developer optimizes for varying display sizes. Some apps might not use the larger screen effectively or could behave unexpectedly when rotating or splitting views. The onus is on software providers to catch up, which can lag behind the hardware availability. Until foldables reach a critical mass, a segment of apps may ignore them, slightly detracting from the user experience for some owners.

From a market perspective, demand has recently been below some optimistic expectations, indicating challenges in convincing mainstream users. In fact, industry data showed that foldable smartphone shipments stalled in 2024, growing only about 5% that year, and are projected to dip slightly (−4%) in 2025​ displaysupplychain.com. This plateau suggests that after an initial surge of early adopters, converting the next group of buyers is proving harder. Part of this is due to competition and market concentration: currently the foldable market is dominated by just a couple of brands and heavily skewed to certain regions​ displaysupplychain.com. Samsung, the leader, has seen slower adoption in critical markets like the US and China​ displaysupplychain.com, and Chinese brands have pulled back a bit amid economic uncertainties. If only a few OEMs carry the category, any stumble by one (e.g., Samsung’s foldable sales slowing) affects the whole market’s growth.

Additionally, consumer skepticism and inertia present a challenge. Many users are in “wait-and-see” mode, sticking to what they know (slab phones) until foldables prove themselves over time. This means the foldable segment must continuously justify its value proposition through clear improvements, which is not easy each year. Finally, macro-economic factors like inflation or reduced consumer spending can hit expensive gadgets like foldables particularly hard – they are a discretionary purchase that can be delayed in tough times. In summary, challenges for foldable phones include managing high production costs, improving durability further, enhancing software support, breaking out of a niche to broader adoption, and weathering competitive and economic headwinds.

Growth Opportunities and Future Innovations

On the flip side, the foldable phone segment offers rich opportunities for growth and new innovations. One of the biggest opportunities is technological differentiation in a mature smartphone market. Foldables represent a rare area of high-growth potential (projected ~27% CAGR through 2027, far outpacing overall smartphone growth)​ gsmarena.com. This attracts investment and R&D – display makers, materials companies (for UTG and hinges), and component suppliers all stand to benefit from the expansion of foldables, fueling a virtuous cycle of innovation. There is ample room for future product innovation: for example, companies are already experimenting with tri-fold devices (that fold twice to unfold into even larger displays) and rollables (screens that expand without a hinge). These new form factors, expected in the coming years (2025–2026), could further broaden the appeal of flexible devices and keep consumers excited with fresh designs​ displaysupplychain.com.

Market expansion is another opportunity. As awareness grows and prices gradually come down, foldables can penetrate new customer segments. We are likely to see foldable phones move beyond the tech enthusiasts and high-income professionals to reach more mainstream demographics. In particular, younger users (who currently may be priced out) could become a big market if more affordable models appear – a $600 foldable flip phone, for instance, could attract a wave of Gen Z buyers looking for something different and trendy (there are hints of this with some newer devices around $700). There’s also an opportunity to target enterprise and business markets more strongly: companies equipping their workforce with foldables can boost productivity for on-the-go tasks. The strong growth in enterprise adoption noted by Samsung​ dazeinfo.comsuggests untapped demand in corporate settings for a phone that can double as a mini-tablet for presentations, note-taking, and multitasking. Niche professional segments (photographers, mobile gamers, etc.) also present opportunities if devices can be tailored or marketed to their needs (for example, a foldable with a professional-grade camera and stylus could appeal to creatives).

Geographical expansion is happening too. So far, China, South Korea, and the U.S. have led in sales, but other large markets like India and Europe are seeing more foldable launches. In India, where value-for-money is crucial, the appearance of relatively affordable foldables (e.g., by TECNO or Samsung’s older Fold models assembled locally) could unlock a huge market. Europe is getting more Chinese foldable brands entering, which will increase competition and awareness. As more players bring foldables to more countries, global volume will rise.

A major potential catalyst on the horizon is Apple’s entry into foldables. While Apple has not announced any foldable iPhone yet, industry watchers expect Apple to introduce either a foldable iPhone or iPad in the coming years (rumors point to 2025 or 2026). IDC and other analysts see Apple’s eventual entry as a turning point that could “bring reason for optimism” and significantly expand the foldable market​ displaysupplychain.com. Apple’s huge loyal user base and marketing prowess could mainstream the concept of foldables in a way no other brand can. If and when an “iPhone Fold” appears, it might convert many who have been holding out, and even push Android manufacturers to innovate further to compete. In the meantime, the lack of Apple creates an opportunity for Android OEMs to capture premium users who are curious about foldables – essentially, an open field in the premium segment that Apple normally dominates. Brands like Samsung are actively trying to lure high-end users (even former Galaxy Note users, etc.) to foldables​ counterpointresearch.com, and some success here could cement their lead before Apple arrives.

Another opportunity lies in the component innovation ecosystem. For example, the development of better batteries (perhaps flexible batteries) would address current shortcomings like relatively modest battery life on some foldables. Likewise, advancements in chipsets, allowing powerful performance in these unique form factors without overheating, will make foldables more capable for heavy tasks, attracting more buyers. AI integration (which the latest smartphones emphasize) could also benefit foldables, for instance by intelligently adjusting the UI based on how the device is folded or predicting when to switch screen modes. Foldables are at the forefront of pushing such next-gen features because they demand new solutions.

Lastly, branding and differentiation strategies present opportunities. Because foldables are eye-catching, companies can align them with luxury and lifestyle branding (special editions, fashion collabs, etc.). This can open up partnerships and marketing angles that standard phones don’t have, potentially appealing to consumers beyond tech specs – e.g., a designer-branded foldable phone as a status symbol. As the technology stabilizes, we may see more diverse designs (different sizes, aspect ratios, or even wearable concepts) that cater to different tastes and needs, thereby widening the market. In conclusion, while challenges exist, the foldable phone arena is ripe with opportunities: for technological breakthroughs, for capturing new customer groups, and for redefining how we use mobile devices in the coming decade.

6. Forecast for 2025

The foldable phone market is at an inflection point, and projections for 2025 suggest continued growth, albeit with some uncertainty. In this section, we outline the expected market size and trajectory by 2025, anticipated trends, potential new entrants, and the outlook on pricing and adoption.

Market Size & Growth Trajectory: By 2025, foldable smartphones are expected to become a more substantial part of the smartphone industry. Market forecasts vary, but many analysts predict a robust increase in annual shipments. International Data Corporation (IDC), for example, projected that foldable phone shipments will roughly double from ~18 million in 2023 to around 35–40 million units in 2025​ gsmarena.com. This would put foldables at an estimated 2–3% of the total smartphone market by 2025, up from just over 1% in 2022. Some forecasts are even more bullish – Statista forecasts approach 50+ million units in 2025 (though these might be on the higher end), while others like DSCC have recently tempered expectations. The most recent industry outlook (late 2024) actually suggests growth might slow in the immediate term: after a projected ~25 million units in 2024​ coolest-gadgets.com, shipments in 2025 could be flat or slightly down (~22 million) if current trends hold​ displaysupplychain.com. This cautious view takes into account the 2024 plateau in demand. However, many experts see that pause as temporary, expecting an acceleration again in 2025–2026 as new models and possibly new players reinvigorate interest. On the whole, a reasonable baseline scenario for 2025 is that the foldable market will reach somewhere in the 30 million+ units range, representing healthy growth from today, but not yet mass-market volumes. Revenues from foldable sales in 2025 will also climb accordingly – given ASPs likely still around $1000, the foldable segment could be generating on the order of $30–$40 billion in revenue that year (for comparison, IDC estimated ~$42 billion by 2027​ gsmarena.com, so mid-2020s should be approaching that ballpark).

In terms of market composition, by 2025 we expect a more diversified playing field. Samsung will likely remain a top vendor, but its global share may continue to decline from ~70% toward 50% or lower​ coolest-gadgets.comas other manufacturers ramp up. Chinese OEMs (Huawei, Oppo, Honor, Xiaomi, etc.) are forecast to collectively take a larger slice, especially with China’s foldable demand remaining high. There is also potential for shift in form-factor mix: while flip-style devices have led in unit volumes historically, the gap between flips and book-style folds might narrow or even reverse as larger foldables become more mainstream. In fact, Counterpoint Research noted that in early 2024, shipments of book-style foldables exceeded clamshells for the first time in many quarters​ counterpointresearch.com, thanks to many new large-screen models launching. If that trend holds, 2025 could see roughly an even split between the two form factors, which has implications for component demand (e.g., larger foldable screens). Overall, moderate growth with increasing variety is the consensus trajectory for 2025 – not an explosion, but a steady march upward setting the stage for bigger jumps later in the decade.

Emerging Trends Influencing 2025: Several trends will shape the foldable market through 2025. One is the push towards more affordable foldables, which is expected to broaden the customer base. By 2025, we anticipate multiple manufacturers will offer “entry-level” foldables – for example, devices that use mid-range processors or simpler camera setups to hit lower price points. This trend is already starting (as mentioned, a few sub-$1000 models have debuted), and by 2025 these could capture a notable share of sales, especially in price-sensitive markets. Increased competition in Western markets is another trend: companies like Honor and OnePlus (Oppo) are expanding foldable availability in Europe and possibly North America. More competition means more marketing and awareness, which should lift consumer familiarity with foldables. It also means faster innovation cycles as brands vie to differentiate – we expect to see features like virtually crease-free displays, improved battery life, and even lighter/thinner designs becoming selling points in 2025 models.

Another important trend is the exploration of new form factors around the foldable concept. By 2025, it’s possible we will see at least a prototype or limited release of a rollable phone (a device where the display extends upward or sideways to enlarge, rather than folding). Companies such as Motorola and TCL have shown rollable concept devices; if one comes to market by 2025, it could be a disruptive innovation that garners a lot of attention, although likely in small quantities initially. Additionally, we might see dual-fold or tri-fold tablets/phones in development – for instance, a device that folds out twice to achieve an even larger display. Samsung showcased a tri-fold concept in past trade shows, and other manufacturers have patents in this area. While 2025 might be a bit early for these to be mainstream, the buzz around them will influence consumer expectations and competitor plans.

Potential New Entrants: The foldable arena by 2025 could welcome some big new players. The most speculated entrant is Apple. While Apple is notoriously secretive, industry insiders suggest Apple might introduce a foldable iPad or iPhone in the mid-2025 to 2026 timeframe​ displaysupplychain.com. If Apple does announce a foldable device in 2025, it would be a watershed moment – likely expanding the market dramatically, as many Apple loyalists (and even competitors) would validate the foldable format. Even if Apple’s entry comes a bit later, the mere anticipation of an Apple foldable in the works will keep incumbents on their toes throughout 2025. Another entrant to watch is Google’s continued involvement: after the Pixel Fold, Google might launch a second-gen foldable or even a different form factor like a foldable Pixel tablet. Microsoft, which tried dual-screen with the Surface Duo, could pivot to a true foldable screen device in the future as well (especially given their interest in productivity devices). Among Android brands, virtually all major ones except Sony have either launched or signaled plans for foldables by 2025 – for example, OnePlus officially joined in late 2023, and brands like Vivo and Xiaomi will likely iterate new models. There’s also the possibility of smaller/emerging brands in regions like India or others adopting off-the-shelf foldable designs to sell under their brand (similar to how Tecno did). As foldable components become more readily available, the barrier to entry lowers, so we could see unexpected brands or new startups releasing foldable devices.

Furthermore, the supply chain might see new entrants – e.g., more display manufacturers producing flexible screens (BOE, CSOT in China ramping up) which could empower additional phone makers to create foldables. Disruptive innovations from component suppliers could also enable new entrants: for instance, if a supplier comes up with a standardized hinge module that any phone maker can buy and integrate, we might see a proliferation of foldable models across tiers. In essence, by 2025 the competitive field should widen beyond the early handful of companies, potentially including the world’s most valuable tech company (Apple) and other ambitious players, which will drive the next phase of growth.

Pricing and Adoption Outlook: In 2025, the pricing of foldable phones is expected to become slightly more accessible than today, but they will still command a premium over normal smartphones. The top-tier foldables (flagship large-fold models) will likely remain in the ~$1500+ range, especially if new technology like under-display cameras or advanced materials are added. However, we anticipate a greater number of models in the $1000-$1200 range, particularly among flip-style devices and “lite” versions of foldables. This aligns with the trend of lower ASPs noted by analysts as volume scales up​ gsmarena.com. By 2025, second-hand and refurbished foldables may also become a market of their own, providing a cheaper entry point for some consumers.

From an adoption perspective, foldables in 2025 will be much more common in the hands of consumers than a few years prior, but still not ubiquitous. They are likely to move from an early-adopter phase to an early-majority phase among high-end users. We could see foldables making up perhaps 5-10% of the premium smartphone sales (phones $800 and above) in 2025, up from ~7% in 2022​ counterpointresearch.com. The general public’s awareness will be high; even if someone doesn’t own a foldable, chances are they know someone who does, or have seen demo units in carrier stores. The novelty factor will start wearing off as they become normalised, which is a double-edged sword: on one hand, it means foldables are accepted as a legitimate option; on the other, they will increasingly compete on practical value rather than just wow factor.

We expect consumer adoption to grow in enterprise and professional segments strongly by 2025. More companies might issue foldables to employees in roles where multitasking on mobile is beneficial (for example, financial analysts, remote support technicians, etc.). Enthusiast communities (photography buffs, gamers) will have established niches for foldable-specific use. If durability continues to improve, some durability skeptics will have been convinced by seeing two or three generations with fewer issues, thus expanding the potential customer base. Carrier support will also influence adoption: by 2025, carriers might offer aggressive trade-in deals (swap your old phone plus some cash for a new foldable) to drive upgrades among customers, especially if regular phone sales stagnate. This could boost adoption in markets like the US where carrier subsidies are common​ counterpointresearch.com.

One thing to watch is whether foldables remain a differentiated category or start merging with the mainstream. By 2025, the line could blur if, say, a foldable device is offered at the same price as a flagship slab phone – then it simply becomes “the new flagship format.” However, if prices stay high, foldables will remain a distinct premium choice. The outlook is that adoption will steadily rise through 2025 but probably not explode until factors like an Apple launch or sub-$800 pricing come into play. Thus, stakeholders are preparing for growth but with realistic expectations that foldables will still be a minority of total smartphone shipments in 2025, albeit an influential and lucrative minority.

7. Conclusion & Strategic Recommendations

Key Takeaways: The foldable phones market has transitioned from a futuristic experiment to a fast-growing segment of the smartphone industry. Foldables have shown a compelling evolution – in just a few years, they’ve become more durable, more user-friendly, and slightly more affordable, addressing many early concerns. The market is currently led by a few key players (with Samsung in front and Chinese OEMs catching up) and remains centered in premium price tiers. Consumer interest in foldables is high, thanks to the promise of combining the portability of a phone with the productivity of a tablet. However, challenges like high prices, durability perceptions, and uncertain short-term demand have kept foldables in the early adopter stage. The next couple of years (through 2025) will be critical in determining whether foldables break into the mainstream. Growth forecasts are optimistic but tempered – stakeholders expect foldables to expand their share and reach perhaps tens of millions of units annually, but significant inflection points (like Apple’s entry or major price drops) will likely be needed for mass adoption. Technologically, foldables are spearheading innovations in displays and mobile hardware that could trickle down across the entire industry. Overall, foldable smartphones represent a key strategic battleground in the high-end mobile market, with potential to reshape how consumers interact with devices.

Strategic Recommendations:

• For Manufacturers (OEMs): Continue to invest in R&D for durability and design improvements. Every new generation should bring tangible enhancements – whether it’s a less visible crease, a stronger hinge, or reduced weight – to convince users that longevity and usability are no longer concerns. Focus on lowering production costs (through economies of scale and supply chain partnerships) so that you can bring down prices or introduce mid-range foldable models by 2025, capturing a wider audience. Differentiate your products with unique features: for instance, a crease-free display, advanced camera systems, or software experiences tailored to large screens can set your foldable apart. Given that software is a differentiator, invest in custom UI/UX optimizations and work closely with app developers to ensure a rich ecosystem of foldable-optimized apps. Marketing should also educate consumers – show the practical benefits (multitasking, entertainment, etc.) and demonstrate torture-tests of the devices to build trust in durability. Manufacturers should target not just tech enthusiasts but also specific user groups (like professionals, creatives, gamers) with use-case driven campaigns. Additionally, prepare for competitive responses to new entrants: if Apple or others join the fray, be ready with strong product roadmaps and perhaps niche form factors (like rollable screens) to stay ahead of the curve. Those who can establish a reputation for the most reliable and useful foldables now will have an advantage as the market expands.
• For Component Suppliers & Investors: The growth of foldables opens opportunities in the supply chain. Investors should look at key component makers – display manufacturers (OLED and UTG glass suppliers), hinge mechanism producers, and semiconductor companies enabling these devices. Supporting these suppliers in expanding capacity and advancing their tech can pay off as demand for foldable components is set to boom (e.g., the UTG cover glass market is growing rapidly alongside foldables​ displaydaily.com). From an investment standpoint, aligning with companies that have a clear roadmap in the foldable space (or enabling technologies like flexible batteries, advanced polymers, etc.) is wise, as foldables are expected to account for an increasing share of premium phone profits. Diversification and partnership will be key: suppliers should try to engage with multiple OEMs (not just one brand) to become industry-standard providers of foldable parts. This could involve standardizing certain components to sell at scale and reduce costs.
• Market Expansion & Collaboration: Stakeholders across the industry should collaborate to overcome adoption barriers. Carriers and retailers can support foldables by offering generous trade-in deals, installment plans, or demo experiences in stores to get these devices into consumers’ hands without the full sticker shock upfront. This has proven effective in selling premium devices in the past. Enterprise solution providers should consider foldables in their mobile device management and app development, as more businesses will consider issuing foldables to employees if they see clear software support and security integration. There is also an opportunity for cross-industry partnerships – for example, content creators or media companies could partner with OEMs to create experiences (in gaming or streaming) that show off foldable screens, thereby enticing consumers with exclusive content or functionality.
• Focus on Consumer Education: Even as technology improves, consumer perceptions might lag. It’s recommended to run awareness campaigns highlighting how far foldables have come – e.g., independent testing results showing high durability, testimonials from foldable phone users about how it improved their daily productivity, and clarifying misconceptions (like addressing the crease visibility issue head-on). Customer support and warranty programs will also play a role in convincing buyers: offering things like extended warranties or one-time screen replacements can alleviate concerns about potential damage, making customers more comfortable buying foldables despite the higher cost.
• Long-Term Vision: Keep an eye on the long game. Foldable and flexible displays are likely just the first step toward more revolutionary form factors (perhaps rollable phones, or devices that fold into wearables, etc.). Companies should build competencies in flexible electronics now, as this know-how could apply to future products (like foldable laptops, or even stretchable displays down the road). For investors, this means the real payoff might come as these technologies expand into multiple device categories (phones, tablets, PCs, even automotive displays). Ensuring a stake in this transformation now – when foldables are proving the market – could secure a strong position in the broader flexible tech revolution.

In conclusion, foldable phones are carving out a significant and growing niche in the market with strong future prospects. Stakeholders that proactively address current challenges and capitalize on emerging opportunities stand to benefit immensely. Manufacturers should drive innovation while working to reduce costs; competitors must differentiate and not underestimate new entrants; and investors should recognize the broader trend of flexibility in tech. By 2025, we expect foldables to be a common sight among premium devices, and those companies that have built a solid strategy around this category will be those leading the next era of mobile technology. With careful execution, foldable phones could very well move from a nascent novelty to a mainstream mainstay of the smartphone landscape in the years ahead.

Sources:

1. Dazeinfo – “Global Foldable smartphone market 2022: Samsung takes the cake!” (March 6, 2023)​ dazeinfo.com​ dazeinfo.com
2. GSMArena (IDC data) – “IDC: Foldable shipments to reach 48.1 million units by 2027” (March 30, 2023)​ gsmarena.com​ gsmarena.com
3. Counterpoint Research – “Survey: 28% of US Smartphone Users Highly Likely to Opt for a Foldable as Next Purchase” (April 3, 2023)​ counterpointresearch.com​ counterpointresearch.com
4. Counterpoint Research – “Global Foldable Smartphone Shipments Up 10% YoY in Q2 2023” (Sept 20, 2023)​ counterpointresearch.com
5. DSCC – “Foldable Smartphone Market Stalls in 2024 and 2025” (Press release, Dec 02, 2024)​ displaysupplychain.com​ displaysupplychain.com
6. AndroidAuthority – “The world’s first foldable phone maker is now out of business” (Nov 20, 2024)​ androidauthority.com
7. Samsung News / Thenextweb – Android 12L and foldable software features​ thenextweb.com
8. Display Daily / TrendForce – “Ultra-Thin Glass Market Set to Boom Thanks to Foldable Phones” (Dec 4, 2023)​ displaydaily.com​ displaydaily.com
9. Canalys via Dazeinfo – Foldable market share by brand 2022​ dazeinfo.com​ dazeinfo.com
10. Counterpoint via Coolest-Gadgets – US consumer preferences (fold vs flip, brand)​ coolest-gadgets.com​ coolest-gadgets.com
11. Huawei Mate X3 – TechRadar (water resistance)​