Omdia: Folding screen smartphones achieve 309% year-over-year growth in 2021

According to Omdia's Q4 2021 Smartphone Model Market Tracker, cumulative shipments of folding screen smartphones worldwide reached 11.5 million units by the end of 2021, a new record since the launch of the first folding screen smartphone in 2019. Due to the high price, folding screen smartphone sales are limited. However, from the second half of 2021, sales have grown rapidly, and the annual shipment volume in 2021 reached 9 million units, achieving an annual increase of 309%. Of these, 8 million units were sold in the second half of 2021, accounting for 89% of total shipments in 2021.

Samsung is the largest original equipment manufacturer (OEM) in the folding screen smartphone market. So far, Samsung has shipped more than 10 million units, accounting for 88% of folding screen smartphone sales, and is the only brand that has sold more than 10 million folding screen smartphones. Samsung has launched a total of nine folding screen smartphones, and the third generation of Samsung models is currently on sale.

"Shipments of Samsung's flagship phones, such as the Galaxy S and Note series, are declining year by year. In order to compete with fast-growing Chinese OEMs and Apple in the high-end market, Samsung chose to bet on its folding screen smartphones; this decision puts Samsung far ahead of friends in the number and sales of folding screen smartphones," said Zaker Li, principal analyst of Omdia's mobile device team.

Zaker continued: "In terms of supply chain, Samsung's advantages in the field of folding screen smartphones are very obvious, and Samsung Display, the world's number one folding display manufacturer, is its subsidiary. ”

Samsung's Galaxy Z-Flip 3 5G shipments reached 4.6 million units, making it the world's largest selling folding screen smartphone model, accounting for 52% of the total number of folding screen smartphones in 2021. The Galaxy Z-Flip 3 5G is designed to be updated with its predecessor, the Galaxy Z Flip 5G, at $999, which is $380 cheaper than the previous model. Through hardware upgrades and price cuts, Samsung's 2021 Galaxy Z-Flip 3 5G sales are 3.5 million units higher than the previous generation Z-Flip (LTE version and 5G version combined) sales in 2020.

The second-selling folding-screen smartphone in 2021 is the Galaxy Z Fold 3 5G, with 2.5 million units. The Galaxy Z Fold 3 is available for $1,800, which is $200 cheaper than the previous-generation Galaxy Z Fold 2 in 2020. However, the reason why the Z Fold 2 shipped more than 700,000 units in the year of launch in 2020 is mainly due to the significant improvement in the quality of the product compared to the previous generation, support for the stylus, and the use of a foldable shape design.

Huawei is the second largest manufacturer in the folding screen smartphone market, with a market share of 10%. Huawei launched folding screen smartphones in China earlier than other manufacturers, with cumulative sales of more than one million units to date. Because the company is still under U.S. sanctions, Huawei can only sell 4G phones for China's domestic market. Although Huawei's Mate X2 is still highly priced. Huawei recently unveiled a new folding-screen smartphone, the P50 Pocket, which is similar to Samsung's Galaxy Z-Flip 3 5G and priced at $1,400 and is still only available for domestic sales in China.

Other brands have also tentatively launched folding screen smartphone products. Xiaomi launched its first folding screen Mix Fold in the first half of 2021, and although the price set by Xiaomi is the lowest in its kind, sales are not ideal. Xiaomi plans to launch a second-generation folding screen smartphone in the first half of 2022.

OPPO also entered the folding screen smartphone market in the fourth quarter of 2021 with the Find N phone. Find N was well received by consumers after its launch, and the supply outstrips demand. Oppo tries to differentiate itself from your friend's folding screen smartphones through different display aspect ratios. The Find N is the smallest of the folding-screen phones, with an inner display size of 7 inches. However, it starts at RMB 8,699 (USD 1,377).

More and more brands are about to join the competition in this market. Honor released the Honor Magic V in January 2022, starting at 9,999 yuan ($1,582), and Vivo is about to launch its first folding-screen smartphone in the first half of 2022.

When mainstream brands enter the folding screen smartphone market, most Chinese brands have limited sales of folding mobile phones. This year, folding screen smartphones launched by Chinese smartphone brand manufacturers are expected to remain mainly sold in China's domestic market. In order to achieve sales growth, the top priority for Chinese companies is to break the low-end image in overseas markets.

As more and more companies launch folding screen smartphones, there will be more and more diversity in design and the emergence of new shape designs. However, since folding screen smartphones are expected to become the most high-end products of all manufacturers' future smartphones, the folding screen smartphone market will be unlikely to enter the ordinary product price segment in the future.

This year, the global folding screen smartphone market is expected to grow significantly from last year to 14 million units. Further, Omdia expects sales to grow steadily each year to reach 61 million units by 2026, accounting for 3.6% of the total smartphone market.