A recent report from DSCC reveals the challenges foldable smartphones are currently facing in the marketplace. After experiencing their first decline in year-over-year sales, the situation is anticipated to worsen. Nonetheless, the report offers a glimmer of hope: Apple’s soon-to-be-launched foldable iPhone.
Rapid Foldable Growth Has Ended Sooner Than Anticipated
Although foldable technology is still in its infancy, it has unfortunately reached a concerning peak. For the first time in history, Q3 2024 reported a decline in panel procurements compared to the previous year.
This appears to be more than just a temporary setback, as DSCC analysts project a year of decline in 2025.
According to the DSCC report:
After enjoying consistent growth of at least 40% annually from 2019 to 2023, DSCC now predicts that the foldable smartphone display sector will see only a 5% increase in 2024, followed by a 4% decrease in 2025. Demand has plateaued at approximately 22 million panels. In Q3’24, procurement of foldable smartphone displays was down 38% year-over-year and is expected to decline further in four of the next five quarters.
This is certainly disheartening news for companies that have invested heavily in foldable technology.
Apple and the iPhone Anticipated to Revitalize the Market
Not unexpectedly, the report suggests that Apple’s forthcoming foldable iPhone will significantly alter the landscape.
The launch of the foldable iPhone is expected in late 2026, prompting DSCC to forecast a record-setting year for foldable devices overall, revitalizing the segment thanks to Apple’s entry.
While the market has entered a stall and is projected to decline for the first time in 2025 on a panel procurement basis, there is cause for optimism. Apple’s anticipated entry into the foldable market in the second half of 2026, alongside its leading position in flagship smartphones, could drive considerable growth in the foldable smartphone sector. Improvements in design, functionality, use cases, and durability could stimulate new demand. Consequently, 2026 is expected to see an unprecedented 30% growth in the foldable market, with over 20% growth projected for 2027 and 2028 as well.
If Apple does launch its foldable iPhone, it will no doubt have a profound effect on the foldable smartphone market.
However, relying solely on the iPhone to revive an entire smartphone category may be risky. If the market has indeed peaked, other smartphone manufacturers may face significant challenges beyond what Apple can address.
While a foldable iPhone will likely boost demand, the extent to which it can improve the fortunes of other competitors remains uncertain. Only time will tell.
What are your thoughts on the early decline of foldables? How much impact do you believe the iPhone will have? Share your thoughts in the comments.
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