Shipments fell 48% QoQ and 26% YoY to 3.1 million units as the foldable smartphone market got overwhelmed by the launch of the iPhone 14 Series and worsening global economic conditions. It was the first quarter with a YoY decline in the short history of the foldable smartphone market.
DSCC’s Quarterly Foldable/Rollable Display Shipment and Technology Report, saw 2022 foldable smartphone shipments rise 62% to 12.9 million units. Samsung remained the dominant brand with an 83% share, down from 86% in Q3’22 and 96% in Q4’21. However, its volumes fell 50% from Q3’22 to Q4’22 as it could not sustain the high volumes from Q3’22, when it launched the Z Flip 4 and Z Fold 4 with particular softness in the US market which accounted for a single digit share of its volumes in Q4’22, overshadowed by the iPhone 14 Pro models. On a worldwide basis, the Samsung Galaxy Z Flip 4 remained the best-selling model with a 47% share, down from 52%, while the Z Fold 4 rose from a 27% to a 28% share. The Huawei Pocket S was the #3 model with a 5% share in Q4’22. Looking forward, a 3% Y/Y decline is expected in Q1’23 followed by a return to growth in Q2’23 helped by new models from Google, Vivo and others. Foldable smartphone shipments are expected to exceed 17M units in 2023 as more brands bring more models to market at lower prices, especially clamshells from Oppo and Vivo with broader releases.
The report also goes on to say that panel shipments were down 50% QoQ and 20% YoY. The general sharp declines in consumer demand for smartphones in the fourth quarter are signs of a pretty rough first half of 2023. Vendors are going to keep demonstrating new foldable designs, and the public is going to lap up the technology and be excited by the prospect, but that will probably not turn into a change in buying habits. There is a danger that foldable devices will be seen as gimmicky in the short term, further hampering their adoption. Did we get too excited, too soon? Maybe.
