Folding Screen Market Rises, Huawei and OPPO "Catch Up"

2023-04-17

Nowadays, smartphones have become an indispensable and important tool in people's lives. Whether it's travel, socializing, or payment, all you need is a smartphone to handle it. Therefore, driven by the diverse needs of consumers, the smartphone industry is also booming. However, as the market gradually saturates, the smartphone industry is no longer as vibrant as before and appears quite desolate. According to IDC data, the total shipment volume of China's smartphone market in 2022 was approximately 286 million units, a year-on-year decrease of 13.2%, marking the largest decline in history. However, it is worth mentioning that during the "cold winter" of the entire smartphone industry, the segmented category of foldable screen phones has achieved counter trend growth. According to data released by CINNO Research, the sales of foldable screen smartphones in the Chinese market reached 2.83 million units in 2022, a significant increase of 144.4% year-on-year. In recent years, more and more mobile phone manufacturers have begun to layout the foldable screen mobile phone market. For example, Huawei introduced its first foldable screen phone, the Huawei Mate X, in 2019; Xiaomi also launched its first foldable screen phone, the Xiaomi MIX Fold, in 2021. With numerous mobile phone manufacturers entering the market, the foldable screen mobile phone market has become increasingly lively. Behind the competition among mobile phone manufacturers to add folding screen phones, there are multiple factors involved. Firstly, consumers' willingness to switch devices is gradually decreasing, and mobile phone manufacturers urgently need to find new growth points. After years of development, the smartphone industry has gradually become saturated and can almost be said to be one-handed. At the same time, although the current speed of smartphone updates is fast, changes and creativity are relatively limited. In addition, in recent years, due to the impact of the epidemic, consumers' consumption concepts have become more rational. Under the combined influence of various factors, consumers' willingness to change phones has decreased, and handheld phones are gradually becoming unsold. Compared with straight-line smartphones, foldable screen phones can bring a stronger sense of freshness, which has attracted many consumers to try, and mobile phone manufacturers are expected to find new growth points in the foldable screen phone market. Secondly, the continuous iteration and upgrading of technology have provided important support for the development of foldable screen phones. The biggest feature of a foldable screen phone is its foldability, but this means higher technical requirements. In fact, foldable screen phones are not new products, but due to various factors such as technology, previous foldable screen phones had problems such as obvious screen creases and excessive weight, which to some extent affected consumers' acceptance of foldable screen phones. With the continuous research and exploration of foldable screen technology by mobile phone manufacturers and supply chain enterprises, significant progress has been made in hinge and other technologies, thereby promoting the development and popularization of foldable screen phones. Thirdly, foldable screen phones are one of the important paths for domestic mobile phone manufacturers to break through the high-end market. Although the entire smartphone market is slightly cooler, the demand for high-end smartphones remains stable. According to data released by Counterpoint Research, global smartphone sales decreased by 12% year-on-year in 2022, but sales in the global high-end smartphone market increased by 1%, which has a significant impact on global smartphone market revenue

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