Folding Phones: Their Ascent and Potential Strategic Importance in the Market
Before the folding phone emerged, the smartphone market had been stagnant for a considerable period.
Media reports indicate that the replacement cycle for young people has extended from 16-18 months to 28-31 months, with some even exceeding 40 months. This implies that a new wave of demand takes three years to emerge, or that the original one-year demand for cell phones now takes three years to complete.
Folding phones are the only category that has experienced growth, and the rate of growth is rapid. 2023 is also considered a significant year for folding phones, and their importance is gradually emerging. However, behind the market boom, it is worth considering whether the manufacturers' path is truly beneficial. Is it a high-end pioneering or simply following the trend? Although almost all manufacturers have entered the game, only a few brands are truly recognized by users.
Despite user arguments about folding phones since their introduction in 2019, many smartphone businessmen have quickly embraced this technology. In recent years, numerous mainstream cell phone manufacturers have released folding phones in an attempt to gain a share of this market. Since the start of 2023, the release of folding phones has accelerated significantly. In the first quarter of 2023, shipments of folding screen increased by 52.8% year-on-year. The popularity of the folding phone market can be attributed to being in the right place at the right time with the right product.
On one hand, it is natural for the desire to change phones to lead to a decline in market demand. Therefore, cell phone manufacturers need to find new avenues for growth and innovation. Folding phones represent a potential sub-track to overcome this bottleneck. On the other hand, market demand is spontaneous. In fact, the history of consumer electronics development has proven one thing - the vast majority of people prefer big screens. However, the large screen of smartphones has hit a 'ceiling' in terms of human hand size after the introduction of full-screen displays. However, the demand for larger screens among phone users has remained constant. They want to be able to chat while browsing news, watch tips while playing games, and even drag and drop text, pictures, and documents directly. Some users even want to be able to write documents and create PowerPoint presentations on their phones. The folding phone is a form that can meet these demands and bring about essential changes in the market.
The final important point is that the leading brand has started actively promoting the market driven by demand, and the technology of the industry chain is gradually maturing. As a result, more mobile phone manufacturers are also recognizing the high market value and differentiated competitive advantages of the folding phone market, and are beginning to enter the game. Considering the current low penetration rate, the development of folding phones is still in its early stages. This presents an opportunity for differentiation in the high-end market, which manufacturers are eager to seize.
Compared to traditional straight plate machines, folding phones have several advantages that improve the user experience. For example, horizontal folding provides a larger screen, a more stylish design, and increased efficiency. Furthermore, folding phones are generally priced at over $1,000 and are considered a symbol of high-end consumerism. They are also representative of the current era, much like flip phones, full-keyboard phones, and touch-screen phones were in the past. Nowadays, folding phones are being hailed as the latest 'symbol' of the year, representing the final barrier in mobile phone technology.
Just because a product form has been recognized, it does not mean that all brands producing this product form can be recognized. During the initial stages of the industry's development, many manufacturers may not prioritize the end result. However, the strategic significance of the folding screen phone for cell phone manufacturers is much higher than its actual user value. The real value of the folding screen has not yet been fully realized. The folding screen has undergone over four years of iterative development, from its initial strategic significance to its practical value on the market. This progress will continue into 2024.
