Are foldable smartphones worth buying? Vivo to challenge Samsung with India launch

The battle for India's foldable smartphone space is heating up. The country’s top brand Vivo is gearing up to launch its latest foldable phone, the XFold 3 Pro, which has been made at the Chinese company's new 170-acre factory in Greater Noida.

With its first foldable phone, Vivo is looking to join the ranks of Samsung and Apple in the premium segment. The June 6 launch of the XFold 3 Pro will see Vivo go head-to-head with Korea's Samsung, which leads the premium segment in India and across the world.

The intensifying competition among smartphone brands is expected to drive foldable segment growth to 35 percent year-on-year in 2024. The XFold 3 Pro would be Vivo's first phone to cost more than Rs 1 lakh.

"The market is promising in the premium segment. Our X series is well-accepted in the market. We feel confident about the foldable category as this phone is not our first-generation device," a Vivo spokesperson told Moneycontrol.

Vivo will also compete with its Chinese rivals OnePlus, Oppo, Motorola, and Transsion Group's Tecno, which entered India’s foldable market in 2023. Samsung was the top brand in the foldable space with a 79 percent share, followed by OnePlus and Motorola with eight and seven percent market share, respectively, as per Counterpoint Research's January-March 2024 data.

Most of the Chinese brands launched their first foldable smartphones in the Indian market in 2023 and together contributed to 29 percent of foldable shipments in Q1 2024, Counterpoint data showed. Motorola and Oppo launched only clamshell-type form factors, while Tecno has launched both book and clamshell-type foldables in India.

"The foldable smartphone is still a very small market in India as it contributed to less than 1 percent of the India smartphone market both in terms of volume and value in Q1 2024. While it is still a niche market, it continues to show double-digit growth consistently," Tarun Pathak, research director at Counterpoint Research, said.

"Although Chinese players face stiff competition from Samsung, who is a more established player in this segment, we expect further launches of foldables from OEMs other than Samsung in 2024," Pathak added.

Foldable phones face competition from other premium smartphones, especially Apple iPhones, in this price segment. "The trust factor also plays a role when it comes to purchasing a premium-priced device like a foldable smartphone for which a global player like Samsung holds an upper hand," Pathak said.

Since launching the X-series in India, which is its largest market outside China, Vivo's market share in the premium segment has grown from 3 percent in 2020 to 17 percent at the end of 2023, the company said, citing market tracker GFK data. Vivo is looking to increase its volume share as more consumers look to upgrade their devices this year.

The company is also looking to capitalize on the ongoing premiumization trend, where consumers move to higher price segments with new purchases, Channana said. He, however, said foldable would continue to be a niche category in the premium segment in India. The premium segment contributes to just 2 percent of the total volumes in the Indian smartphone market.

"The pricing of our foldable phone will be at par with our rivals despite having better specifications and better form factor. We also want to give a premium experience to customers through an omnichannel approach," the Vivo spokesperson said.

Vivo emerged as India’s top smartphone brand in the January-March quarter of 2024, displacing Korea’s Samsung, which slipped to third place. Vivo cornered a 19 percent share of the market, driven by its 5G leadership. Xiaomi, another Chinese firm, and Samsung came in second and third with 18.8 percent and 17.5 percent share, market research firm Counterpoint Research said in a report earlier this month.

Vivo has proposed an investment of Rs 7,500 crore to double its production capacity from the present 60 million units annually and develop India as a global export hub. The operationalization of the Greater Noida factory marks the completion of phase 1 investment, worth Rs 3,500 crore, a company official said. The factory, which is already making the XFold 3 Pro, will be fully functional by the end of June.

Last year, the Chinese firm began exporting India-made smartphones to Bhutan and Malaysia from its old Noida factory, which was already sending shipments to Saudi Arabia and Thailand.

Cons of Foldable Smartphones

Cost:

Foldable smartphones are generally more expensive than traditional smartphones due to their advanced technology and design.

Durability:

The durability of foldable screens has been a concern, with some users experiencing issues with the folding mechanism or screen creases over time.

Battery Life:

The larger screens can consume more power, potentially leading to shorter battery life compared to traditional smartphones.

Weight and Thickness:

Foldable phones can be heavier and thicker than traditional smartphones, which might not be ideal for all users.

App Optimization:

Not all apps are optimized for foldable screens, which can lead to a less seamless user experience in some cases.

Market Options and Trends

Variety of Models:

The market for foldable smartphones is expanding, with various models from brands like Samsung (Galaxy Z Fold and Galaxy Z Flip), Huawei (Mate X series), and others. Each model offers different features and form factors.

Technological Improvements:

Foldable smartphone technology is rapidly advancing, with improvements in durability, battery life, and app optimization over time.

Use Cases

Professionals:

Users who need a larger screen for work-related tasks, such as document editing or using multiple apps simultaneously, may benefit from a foldable smartphone.

Media Consumers:

Those who frequently watch videos, play games, or read on their phones might enjoy the larger display of a foldable smartphone.

Early Adopters:

Tech enthusiasts who enjoy trying out the latest gadgets and innovations may find foldable smartphones exciting and worth the investment.

Foldable smartphones can be worth buying for those who value the innovative design, larger screen size, and enhanced multitasking capabilities. However, potential buyers should weigh the higher cost, durability concerns, and whether the device fits their specific needs and lifestyle. As the technology continues to evolve, foldable smartphones are likely to become more refined and accessible, potentially making them a more appealing option for a broader audience in the future.