Yang Yunfei

1017800664@qq.com

TECH giant Huawei Technologies overtook rival Samsung Electronics to become the world’s leading manufacturer of foldable smartphones in the first quarter of 2024, according to a report published recently by research firm Counterpoint.

It’s the first time the Shenzhen-based tech giant has claimed the top spot in this premium smartphone segment, which is expected to witness robust growth in the coming years with the gradual improvement of flexible screens and hinge-related technologies alongside continuous product price cuts.

Huawei’s shipments of foldable smartphones in the first three months of the year jumped a staggering 257% year on year, compared with a 42% drop in shipments by Samsung, which had consistently led the market.

Huawei’s strong showing allowed it to take 35% of the global foldable smartphone market, up sharply from 14% a year ago. By contrast, the South Korean conglomerate’s market share tumbled from 58% a year ago to just 23% in the first quarter of 2024, according to Counterpoint data.

Huawei’s focus on 5G models has turned out to be a key driver of its success in the foldable market. In the first quarter of 2024, 84% of the firm’s foldable shipments were 5G-enabled. While a year ago, Huawei’s foldable portfolio consisted solely of 4G LTE (long-term evolution) devices, Counterpoint said.

Launched in September 2023, the Mate X5, Huawei’s first 5G booklet-type foldable, has been one of the top sellers in China’s foldable market for three consecutive quarters. In February 2024, Huawei unveiled its first clamshell model Pocket 2, which significantly contributed to its shipments in the first quarter.

Huawei made inroads into the foldable smartphone segment as early as 2019. The firm has maintained its top position in the domestic foldable smartphone market in sales and brand reputation, thanks to its strong research and development capabilities.

The U.S.-sanctioned tech giant once vied with Apple Inc. and Samsung to be the world’s biggest handset maker until rounds of U.S. restrictions beginning in 2019 cut its access to chipmaking tools essential for producing its most advanced models.

Founded in Shenzhen in 1987, Huawei is a leading provider of information and communications technology, as well as infrastructure and smart devices, including mobile phones, tablets, wearables and broadband devices.

Despite facing challenges in securing supplies for its homegrown 5G system-on-chip (SoC) due to U.S. sanctions, Huawei will continue to treat foldables as a priority because of the higher price they can command, according to Counterpoint.

The Counterpoint report said that global shipments of foldable smartphones in the first quarter this year grew 49% year on year, driven mostly by Huawei, as well as Honor and Lenovo Group-owned Motorola.

Smartphone maker Honor Device Co., which was spun off as an independent business from Huawei in 2020 after numerous U.S. sanctions crippled the Chinese tech giant’s smartphone business, saw its global foldable market share jumped from 3% a year ago to 12% in the first quarter this year, making the Shenzhen-based firm now the third-largest foldable brand in the world, according to Counterpoint.

Honor’s shipments outside of China grew massively from a small base, driven by the slimmest infolding booklet-type model, the Honor Magic V2, which became the most shipped foldable phone in Western Europe in the first quarter.

Global shipments of foldable handsets are projected to reach 100 million units in 2027 from 13.1 million units in 2022, with a compound annual growth rate of 51% during the period, according to a report released by China Securities earlier this year. Currently, the penetration rate of foldable handsets worldwide only stands at 1%.

Foldable smartphones are becoming increasingly popular in China, with shipments surging 114.5% in 2023 from a year ago to 7 million units, according to global market research firm International Data Corp.

A survey conducted by Counterpoint shows 64% of high-end smartphone users in China are willing to purchase a foldable smartphone for their next purchase, and 89% of potential foldable buyers prefer booklet-type foldable designs for their wide and large displays and multitasking features.