Samsung is the leading manufacturer of foldable phones. Even though there have been a few other companies, mostly Chinese, that have made similar devices the Korean giant remains in a league of its own right now. Its Galaxy Z Fold and Z Flip lineups are a class apart. The clamshell foldable Galaxy Z Flip series has turned out to be particularly popular among customers, largely because of its more attainable $999 price tag and stylish looks.
It was smooth sailing for a couple of years as Samsung's foldables didn't have any real competitors. Things only started to change a couple of years ago when we began seeing Chinese manufacturers like Huawei and Xiaomi come out with their foldable phones. Other manufacturers like Oppo and Vivo also followed suit, likely encouraged by the response that some of the other Chinese foldables had received.
They also capitalized on Huawei's troubles that have largely limited the viability of its smartphones to China. While other Chinese manufacturers face the same distribution challenges across North America, they've tried to make the most of their access to lucrative markets across Europe and elsewhere. No wonder, then, that we saw these manufacturers make a big deal of their foldable phones at the Mobile World Congress 2023 in Barcelona. MWC 2024 takes place later this month and it will be interesting to see whether we see a similar show of force this time around.
We were particularly impressed by what Oppo had brought to MWC last year. It was the Oppo Find N2, a book-style foldable phone that unfolds like the Galaxy Z Fold phones but is smaller and more pocket friendly. The compact size and the aspect ratio made it very easy to use its cover display one-handed. Its smaller footprint also made it more comfortable to use unfolded.
It didn't feel like a device that had been put together in haste just because Oppo also wanted to make a foldable phone. The Find N2 felt very well put together and the company also did a great job of hiding the crease of the foldable panel. The cameras were what you'd expect on a Chinese device, boasting high megapixel counts and enthusiastic software processing, while the software felt good enough. Given the price difference, it was evident that if a customer didn't have loyalty to Samsung, they could potentially opt for Oppo's foldable over a Samsung device.
That would have been healthy competition for Samsung, encouraging the company to continue pushing the envelope on foldable devices. Competition is ultimately good for customers as companies make more of an effort to deliver better products that provide them with the best bang for their buck. If Samsung's foldables exist in isolation with little or no competition, there's not going to be enough incentive for the company to make the kind of leaps it needs to deliver an impressive product every year. That's basically how Apple does things now, it knows that the ecosystem makes the iPhone secure so there's not much need to make major changes to the smartphone.
However, if a new report is to be believed, there's going to be less competition for Samsung's foldables. Oppo and Vivo are reportedly considering giving up on foldable phones as their market share in this segment has plummeted in 2023. They apparently don't see a path to recovery, or are simply not willing to make investments in this long term play, and would rather sit on the sidelines for now.
Huawei isn't slowing down, though, and it's said to be working on a new triple-fold design with a display that'll measure 10-inches when fully unfolded, effectively turning into a tablet. Huawei continues to be the dominant smartphone manufacturer in China, even overtaking Apple recently, so it may find many takers for this new foldable phone in its home country. Perhaps its this domination of the local market that has also discouraged manufacturers like Oppo and Vivo to step away, because even though they can sell their phones outside of China, their devices don't seem to be getting as much traction within China either.
Whatever wacky new foldable Huawei is working on isn't going to worry Samsung since Huawei's troubles limit it to China. Samsung won't be bothered about losing market share in China because it's already below 1% in the world's most populous market. In the absence of other players, the field would effectively be open for Samsung in markets across Europe, the Middle East, Africa, and Asia. Chinese OEMs find it difficult as it is in North America and with a foldable iPhone not expected for at least a couple of years, Samsung's basically going to have that region all to itself.
As Samsung fans, we want to be wowed by its every device, and we love to see nothing more than Samsung absolutely decimating the competition with its technological advancements and engineering prowess. The company's obviously going to have more of an incentive to come out guns blazing if it's got the threat of competition at the back of its mind. If it knows that there's little to no competition in the market and that it has the luxury of time until some competitors emerge, perhaps it may not feel so inclined to push the envelope.
Foldable phones are an emerging category and even though shipments continue to grow in double-digits every year, Samsung still has a long way to go if it wants foldables to account for a significant chunk of its overall smartphone shipments that are in excess of 300 million units across the globe every year. That can only be done if it continues to make sustained efforts to provide major improvements and enhancements with every new iteration.
It has done just that over the past few years, as Samsung's foldables have gone from strength to strength, but slowing this down because of a lack of competition will turn out to be counterproductive. It shouldn't become a situation where customers feel a lack of interest in the foldable phones just because they don't come with enough exciting improvements.
