Apple Falls Behind in Lucrative Foldable Smartphone Market as Google Unveils Pixel Fold

Bloomberg reported on May 11th that after Google's release of the Pixel Fold foldable screen smartphone on the 10th, Apple has become the only major global smart device brand without a foldable phone. This could potentially place Apple at a disadvantage in a field that may generate billions of dollars in revenue in the future.

According to the report, Google unveiled the Pixel Fold during its I/O developer conference on the 10th, making it the last major brand running on the Android operating system to have a foldable screen smartphone. Although Apple had been conducting early development work on foldable screen iPhones a few years ago, they seem to have limited interest in bringing it to market.

However, Apple may soon discover that they are far behind their competitors in this promising field. While foldable phones still represent a small portion of the market, they command higher prices and open doors to new functionalities, helping lower-end brands enter the high-end market. Market observers predict that within the shrinking smartphone market, this niche segment will become the fastest-growing area.

Neil Mawston, Research Director at market research firm Strategy Analytics, stated that the ultimate question for Apple is whether they will help solidify the concept of foldable devices or miss out on it entirely. He said, "Apple has the power to make or break the future of the foldable industry. Releasing a foldable phone that doesn't suit the market too early could potentially damage the entire iPhone series. If Apple doesn't launch a foldable iPhone or iPad by 2025, by which time the industry revenue could reach billions of dollars, then we will start to worry."

Apple has not immediately responded to requests for comments.

Bloomberg states that Apple currently derives a majority of its revenue from the iPhone series. While the series undergoes incremental improvements each year, it has not made significant leaps in design or functionality over the years. However, foldable screen phones have not yet gained enough sales momentum to snatch a significant market share from Apple. Omdia analysis reveals that Apple held a 77% share in the market for phones priced above $751 last year.

Currently, foldable screen phones are limited to competition within the Android system and dominated by Samsung on the global stage. However, in China, the competition is even fiercer, with domestic brands utilizing these devices to enter the high-end market. Xiaomi, Huawei, Vivo, and Oppo all have multiple models on the market. This year, Honor also aims to lower prices in this niche segment through the Magic Vs foldable phone.

Apple has created a virtuous cycle by encouraging consumers to upgrade their iPhones every few years. In contrast, Android phones are more interchangeable and must earn consumer favor with each new device. Foldable screen phones help achieve this.

Until this Wednesday, Google's involvement in the foldable screen phone field was limited to software. However, according to analysts from the International Data Corporation (IDC), Google's Pixel Fold could pose considerable competition to Samsung. Nonetheless, Samsung enjoys a first-mover advantage, holding a 79% market share globally.