The global foldable phone market experienced its first-ever decline in Q3, signalling a shift in consumer trends and competitive dynamics. According to Counterpoint Research, despite many brands making significant gains, Samsung’s performance brought down overall shipment numbers.
A closer look at the foldable market
In its Q3 2024 report, Counterpoint Research revealed that global foldable phone shipments dropped by 1% year-on-year. This decline was unexpected, as many competing brands recorded impressive growth in the same period.
Xiaomi saw a staggering 185% year-on-year increase in shipments, Motorola achieved 164%, Honor grew by 121%, and even Huawei managed a 23% rise. These figures highlight a growing interest in foldables outside Samsung’s domain.
The infographic from Counterpoint shows that Xiaomi and Motorola now hold 6% and 7% of the foldable market share, respectively, and have significant gains from negligible positions in the past. Honor doubled its share to 10%, solidifying its presence.
Samsung, however, saw a sharp 21% drop in foldable shipments, reducing its market share to 56% from a dominant 70% in the same quarter last year. This decline coincided with the launch of its latest foldables, the Galaxy Z Fold6 and Galaxy Z Flip6. Traditionally, new releases drive sales, making these results even more surprising.
Samsung’s challenges and rivals’ opportunities
Counterpoint Research highlighted that the Galaxy Z Flip6 struggled to match the sales of its predecessor, the Galaxy Z Flip5. The research firm stated:
“Among its new models, the book-type Galaxy Z Fold6 delivered a modest performance, while the clamshell Galaxy Z Flip6 struggled to match its predecessor’s sales.”
The Galaxy Z Flip6’s challenges may stem from its limited upgrades over previous models. While it is a well-reviewed device, its secondary display, the Flex Window, received only software enhancements. The fold’s crease remains, and its new Galaxy AI feature is available as a firmware update for older models. Additionally, a price increase dampened consumer enthusiasm.
Counterpoint Research also warned that Samsung faces increasing competition from brands like Honor and Motorola, which are gaining momentum through innovation and competitive pricing. The high cost of foldables, a longstanding issue, continues to deter many consumers.
Foldable phones in the broader smartphone market
Samsung’s struggles in the foldable segment are reflected in its overall smartphone performance. Counterpoint reported a 1% year-on-year drop in total smartphone shipments for Samsung, even as global smartphone shipments rose by 2%. However, Samsung maintained its lead in the market, commanding a 19% share in Q3 2024.
This suggests Samsung’s broader strategy remains effective, but its foldable lineup may need a rethink. Addressing persistent issues like the crease and price could help the company regain its footing in this growing market.
Meanwhile, competitors like Xiaomi, Honor, and Motorola are seizing opportunities to innovate and capture market share. By focusing on consumer needs and refining their products, these brands could further challenge Samsung’s dominance.
The future of foldable phones will likely depend on who adapts fastest to consumer demands, with innovation and affordability being key drivers.
