In January, Korean display companies received a shocking report card. According to market research firm DSCC, Samsung Display, which held 36% of the market share in the foldable market and was considered the future of the industry, lost its first-place position to China’s BOE, which captured 42% in the fourth quarter of last year.
Market research firm Omdia reports that the first-quarter market share forecast (based on sales) predicts BOE at 54.3% and Samsung Display at 28.9%. BOE’s foldable display shipments are expected to exceed 2.56 million units, more than double Samsung Display’s 1.25 million units. Although the timing differs, Omdia, following DSCC, officially recognized BOE’s overtaking of Samsung Electronics in the foldable display market.
The domestic display industry attributes BOE’s increased shipments to the launch of Huawei’s new foldable smartphone in the first quarter. This phenomenon is considered temporary by some. With Samsung Electronics set to intensify orders from the second quarter ahead of the launch of new foldable smartphone models in the third quarter, an industry reversal in favor of Samsung Display is viewed as a matter of time.
However, some argue that dismissing this as a “tempest in a teacup” underestimates the aggressive push by Chinese firms. Huawei and Honor, among others, have been actively entering the market with smartphones utilizing foldable displays since last year. In the third quarter of last year, sales of foldable products by Chinese smartphone companies increased by 106% compared to the same period the previous year. The 30% lower price compared to Samsung’s foldable phones and patriotic consumption amid tensions between the U.S. and China are believed to have contributed to the rise in sales of Chinese phones.
The surge in Chinese foldable phones continues into the first quarter of this year. Recently, Huawei’s Mate X5 (which folds like a book) and Pocket2 (which folds like a clamshell) have been popular in China.
As domestic sales soar, Huawei is expected to become the world’s number one in the foldable smartphone market in the first quarter. DSCC reported on March 11 that Huawei’s global foldable phone market share in the first quarter is about 40%, with Samsung Electronics trailing in the high 10% range.
Samsung Display, which produces foldable displays, and Samsung Electronics, which sells foldable phones, are devising a “super-gap” strategy. Samsung Display is focusing on improving yield (the ratio of good products in total production) and changing the bezel manufacturing method to enhance production efficiency. In response to China’s foldable onslaught, Samsung Electronics is preparing to launch the Galaxy Z Fold/Flip6 in the second half of the year. It is also reported to be devising a strategy to launch budget-friendly foldable smartphones from a mid- to long-term perspective.