Summary of the Key Points
This news highlights two crucial new developments in the foldable screen industry: First, for the first time in seven years since the introduction of foldable screens, the top three manufacturers—Huawei, Samsung, and Xiaomi—have all released flagship foldable devices, creating a competitive landscape where they are directly competing in the high-end market (above 10,000 yuan). This has never happened before, with no three players of comparable size competing simultaneously. Second, these three premium foldable screens are not targeted at the average consumer with a modest income; instead, they are aimed at high-net-worth individuals. This marks a significant shift in the domestic smartphone market, breaking away from the traditional pattern where the main segment was around 3,000 yuan and the upper limit was 5,000 yuan. It also raises a very real question for ordinary users: Are you willing to pay a significant premium of several thousand, or even tens of thousands of yuan, for the new form factor of foldable screens?
Detailed Analysis
Why is this considered the first “real competition” in the foldable screen industry after seven years?
For the first seven years, the foldable screen market was dominated by one company, with the others playing a supporting role: Samsung held the exclusive technology for flexible screens. Other manufacturers’ foldable screens either had deep creases that could damage nails or their hinges would fail after just half a year of use, making them unable to compete with Samsung. Later, Huawei’s foldable screens gained a good reputation, but due to sanctions, their production capacity was limited, and the products were in high demand, driving up prices and preventing them from competing effectively with Samsung. Xiaomi’s earlier foldable screens either targeted a niche market or were priced at around 5,000 yuan to attract attention, without reaching the core high-end segment.
It is only now that all three companies have released large-scale foldable screens with advanced features. Issues such as creases, battery life, and weight have been addressed, and their high-end user bases each number in the tens of millions. They are all investing the best technology and supply chain resources into their foldable products, creating three equal competitors for a real battle for market share. Previous attempts were more like small manufacturers trying to gain attention.
Why are these foldable screens priced at over 10,000 yuan and not for ordinary consumers?
Last year, the average cost of a new smartphone in China was only 3,400 yuan, and 90% of consumers have a budget of less than 5,000 yuan for a new phone. However, the starting prices of these three new foldable screens are all above 12,000 yuan, with the top models approaching 20,000 yuan. This pricing automatically excludes the vast majority of ordinary users. The target customers are clearly three groups: first, business travelers who can use the screen as a semi-tablet to edit documents and attend video meetings without a laptop, for whom a phone costing over 10,000 yuan is a tool for improving efficiency, not just for entertainment; second, tech enthusiasts willing to pay for the latest technology; and third, the high-end gift market, where these screens are seen as a more sophisticated and practical gift than cigarettes or alcohol. Ordinary users, who mainly use WeChat and Douyin, see no need to spend such a large amount on a foldable screen.
What are the manufacturers’ strategies behind these high prices?
The market for ordinary smartphones has reached a saturation point: phones costing 2,000 yuan already have sufficient performance for basic tasks like watching videos and playing popular games, and manufacturers make less than 100 yuan in profit on each unit, even in a highly competitive market. In contrast, foldable screens with prices over 10,000 yuan can generate profits of several thousand yuan each, making them one of the few profitable segments in the industry. Additionally, the high-end smartphone market above 10,000 yuan has been largely dominated by Apple’s Pro Max series, with Android manufacturers struggling to enter. Foldable screens represent a niche that Apple has not yet entered. By targeting this segment now, the manufacturers aim to establish the idea that consumers have another option besides Apple’s high-end phones. Since the core components of foldable screens, such as flexible screens and precision hinges, are still expensive, selling foldable screens at lower prices would dilute the value of their high-end brands. Therefore, it’s more profitable to set higher prices and maximize profits first.
Should ordinary consumers join the craze for foldable screens?
90% of consumers do not need to spend over 10,000 yuan on a foldable screen right now. Foldable screens still have several drawbacks: they are generally heavier than smartphones with similar specifications, and even with improved crease resistance, visible screen imprints remain when the screen is unfolded. The repair costs are also very high; a damaged inner screen can cost several thousand yuan, which is equivalent to half a month’s salary for most people. Buying a foldable screen now is essentially paying a premium for new technology, acting as one of the first users to test the products. It would be better to wait until the competition matures in the next one or two years, when technology improves and costs decrease, and large-scale foldable screens with a good user experience become more affordable. There’s no need to be among the early adopters and suffer financial losses.