Foldable Handset Ushers In A New Era Of Premiumization

Notably, major brands are not the only ones to introduce foldable devices in India. In March, China’s Oppo launched its first foldable smartphone Find N2 Flip. Tecno, another Chinese brand known for budget and mid-range phones, launched a foldable device in April. Samsung and Motorola are also among those launching foldable smartphones in India.

About 170,000 foldable smartphones were shipped to India in 2021, while it was expected to exceed 520,000 units in 2022, said Navkendar Singh, associate vice president at IDC India. He said it is likely to cross 700,000 this year.

“After 5G, a new form factor like a foldable phone is the next big thing for a brand. They will bring premium foldable devices, which will help in brand marketing, and show that they are right up there with any other brand in innovation,” Singh said.

According to Prachir Singh, senior research analyst at Counterpoint, shipments of foldables are expected to grow 30 per cent this year as their larger screens and unique form factors attract buyers. “We expect more companies to launch foldable phones as it will help brands differentiate their products and counter Apple’s brand value in this segment,” he added.

The screen of the foldable phone can be bent from the middle and uses a display with a high plastic substrate. Unlike earlier foldable phones, such as the first-gen Samsung Galaxy Fold, which had problems with poor hinge designs and displays, the new devices have solved most of the flaws.

Some foldable phones offer large tablet-like screens which make them very useful for work. For example, the Samsung Galaxy Z Fold 3 has a 7.6-inch screen and the Tecno Phantom V Fold has a 7.8-inch screen.

The rise in foldable phone shipments, despite the high price tag, reflects a premiumization trend, where demand for such phones is on the rise, while the rest of the segment has seen a slowdown due to the global economic slowdown.

“Techno’s expansion into markets has been stifled by a shift to high-spec equipment. This pivot towards premium is in line with demand, where consumers are willing to pay more for technologically advanced devices, said Arijit Talapatra, CEO, Techno Mobiles.

Talapatra acknowledged that the foldable category is currently niche, but added that the demand will definitely increase in the future.

That said, Sanyam Chaurasia, technology market analyst at Canalys, said the adoption of foldables in India is still not at the same level as it is in other markets. According to IDC, 14.2 million foldable devices will be shipped globally in 2022.

“The price segment at which these foldable devices are being launched is still very high and that is still niche. User interface and hardware quality still needs a lot of improvement. Once that happens, it will grow exponentially,” Chaurasia said.

He added that in India, it is going to be difficult for brands to bring foldables to the more affordable segments, as the prices of components, especially the displays used in these devices, are very high.