The Mobile World Congress in Barcelona (Spain), which opens on Monday February 27, is no longer only shunned by the biggest brands of smartphones, Apple and Samsung reserving their latest innovations for in-house events. Even before the opening of the Catalan show, the Chinese Oppo, the fourth largest manufacturer in the world according to the firm Counterpoint, presented its first folding screen phone for Western markets on February 15.
This product typology is the most tangible innovation in a market that for many years has relied on incremental improvements (5G, better camera, video stabilization, faster battery charging, etc.), but remains of niche. A study published in October 2022 by the research firm IDC recalls the fact that this segment only weighed 1.1% of the market last year. However, it should grow by 38.7% on average by 2026 (compared to 1% for the rest of the industry), to reach 2.8% market share.
Almost every major global player in the industry has ventured into this new territory. In the wake of Samsung, which was the first to succeed in imposing these devices – the Fold which, unfolded, offers a display close to a mini-tablet, and the more compact Flip –, Huawei, Vivo, Honor and Xiaomi have launched . Main absent, the giant Apple could launch in turn in the course of 2023.
Even if they still have to convince customers of the interest of this type of product – which also requires persuading developers to adapt their applications to this original screen format – the advantage for manufacturers is to to be able to display very high prices in a market where growth is no longer there: 1,599 euros for a Galaxy Z Fold 4 or 1,100 euros for the Oppo N2 Flip, for example.
A counter-intuitive evolution
According to a report published on December 2, 2022 by the firm IDC, worldwide smartphone shipments would have fallen by 9.1% in 2022. “We believe this market will remain challenging through the first half of 2023, with the expectation that the recovery will improve towards the middle of the year”estimated then Ryan Reith, vice-president of the cabinet.
His colleague Anthony Scarsella pointed out that, “despite the market slowdown, average selling prices [continuent] to increase, knowing that consumers are opting for high-end devices that can last three to four years”. The average duration for renewing equipment would now amount to almost forty-three months.
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