Foldable handsets to grab sector headlines this year
China's foldable smartphone market is expected to witness robust growth this year, mainly driven by the gradual improvement of flexible screens, software design innovations and continuous product price declines, industry experts said.
A report from market research company International Data Corp said shipments of foldable handsets in China are expected to reach 10 million units this year, an increase of 53.2 percent year-on-year. The figure is likely to reach 15 million units in 2027, with the compound annual growth rate reaching 37.8 percent.
The consultancy estimates that global shipments of foldable smartphones are projected to reach 25 million units in 2024, up 37 percent year-on-year. In addition, artificial intelligence has quickly become part of the smartphone discussion, sparking new interest in next-generation AI experiences on handheld devices.
Market consultancy Counterpoint Research showed that the global foldable smartphone market grew 49 percent year-on-year in the first quarter, marking its highest rate of increase in six quarters.
The surge was primarily driven by significant shipment increases among several Chinese smartphone manufacturers, it said. Notably, Huawei Technologies Co ascended to the top spot in quarterly global shipments for the first time, overtaking South Korea's Samsung Electronics, which had consistently led the market.
Book-type foldables accounted for 55 percent of global foldable market shipments in the first quarter, surpassing the clamshell type for the first time since 2021, said Counterpoint Research.
Samsung Electronics on Wednesday unveiled its latest foldables, the Galaxy Z Fold6 and Galaxy Z Flip6 series in China, which come with improvements over previous models and AI features, as it aims to grab a bigger slice of the world's biggest smartphone market by integrating software innovation with the foldable form factor.
The company is developing its suite of AI features known as Galaxy AI specifically for the Chinese market by working with local tech and internet companies, and looking to regain market share that has been captured by domestic players.
In January, Samsung Electronics China and Baidu AI Cloud — Chinese tech heavyweight Baidu Inc's cloud computing unit — inked a strategic partnership on AI ecosystems, to bring the AI capabilities of Baidu's large language model Ernie Bot to its Galaxy S24 Series.
Amber Liu, an analyst from market consultancy Canalys, said the supply chain ecosystem for foldable devices has developed rapidly over the past few years, and there is an increasing number of suppliers for foldable displays, hinges and other key components.
Liu said device vendors are highlighting innovative engineering solutions and product designs for a better user experience while constantly pushing down prices, adding that major smartphone vendors are getting ready to compete in the foldable category, which will become a vital part of their high-end strategies and corporate branding.
"We expect this year will see many new foldable device launches as vendors continue reducing thickness, weight and price, which will be vital for mass-market adoption," she said.
Moreover, experts said the next two or three years will be key in bolstering the application of AI technology into electronic devices. IDC estimates that a total of 170 million AI-powered smartphones will be shipped globally in 2024, representing almost 15 percent of total smartphone shipments in 2023.
Notably, in the Chinese market alone, the share of next-generation AI smartphones is expected to surpass 50 percent by 2027, IDC said.
Nabila Popal, research director with IDC's worldwide quarterly mobile phone tracker, said consumers are willing to pay more for their phones fueled by innovations in foldables and the idea of next-generation AI on a device.
"While AI will impact all devices, smartphones will be the device driving the AI revolution into every home."
