Consumers check out Huawei foldable smartphones at a store in Shanghai on Oct 24. [Provided to China Daily]

More makers stepping up moves to tap into the sector as global shipments witness big growth in 2020

Foldable smartphones are set to become all the rage this year as more manufacturers are expected to launch them.

Devices with foldable screens can be used either as tablets or as pocket-size handsets, creating broad application scenarios.

This nifty model is the smartphone market's attempt to shake off an innovation lull and bolster sales that have been sluggish due to the COVID-19 pandemic.

Global foldable panel shipments are expected to surge 454 percent year-on-year to 3.1 million units in 2020. Data for last year have yet to be compiled and confirmed.

Total 2020 revenues are seen rising 394 percent to $462 million, according to a report from Display Supply Chain Consultants, an industry tracker.

The DSCC report said Samsung was clearly the dominant brand last year with an over 90 percent share in the third and fourth quarters and an 87 percent share for the full year on the basis of panel procurements.

It is estimated to take up an 88 percent share in last year's foldable smartphone market in terms of panel shipments.

At least three foldables are expected from Samsung this year. In addition, Samsung Display is expected to become more aggressive in helping other brands enter the foldable market by selling them panels for the first time this year.

In February, the South Korean technology giant unveiled Galaxy Z Flip, which uses a vertically folded screen and a retro flip design, and in September the Galaxy Z Fold 2.

The DSCC report noted by model, the Samsung Galaxy Z Flip and the Z Fold 2 are expected to be the two bestselling foldables last year on both unit and revenue basis.

Ross Young, CEO of DSCC, tweeted that Xiaomi Corp may launch three foldable smartphones this year, each with a different design－out-folding, in-folding and clamshell.

Other domestic players such as Oppo and Vivo are also expected to launch foldable smartphones this year. Google is reportedly working on a foldable smartphone code-named "Passport", which is expected to be released in the third quarter this year.

Visitors try Samsung Galaxy Z Flip 5G smartphones during a telecom expo in Guangzhou, Guangdong province, in November. [Photo by Li Zhihao/For China Daily]

Wu Shuyuan, a senior analyst at Beijing-based market research firm Sigmaintell, said global shipments of foldable smartphones are expected to rise 173 percent this year to about 11 million units.

Foldable sales, however, might be hampered by supply chain disruptions, high costs and sub-optimal hinges of the mechanical design that allows the flexible panel to fold and unfold. This could reduce foldables to a market niche, Wu said.

"Sales will witness an explosive growth if the price falls below 8,000 yuan, which mainly depends on the maturity of the entire supply chain."

Last year, Chinese smartphone maker Huawei Technologies Co unveiled the Mate Xs, its second-generation folding screen smartphone.

For its part, US-based Motorola rolled out its premium 5G-powered foldable mobile phone Razr in September. Priced at 12,499 yuan ($1,932), the gadget can fold to the size of a wallet and fit in pockets or bags.

Meanwhile, Royole Corp, a Shenzhen-based startup developing flexible screens, launched its second-generation bendable phone. Priced at 9,988 yuan, the FlexPai 2 is the first 5G flexible phone to cost less than 10,000 yuan.

According to a research report from Strategy Analytics, a market research firm, global foldable smartphone shipments will grow to 100 million units by 2025. It predicted foldables will be the fastest-growing segment in the premium smartphone market for the next decade.

The R&D and mass production of foldable phones depend heavily on panel manufacturers. Zhang Yu, vice-president of BOE Technology Group, said the price will likely drop to around 10,000 yuan this year as major screen panel companies have scaled up their production capacities. Also, material costs are expected to plummet in two years.

"The foldables have low display yields and higher design costs as of now. Consumers need to spend more to buy foldable smartphones that have the same configurations compared with other phones," said Jia Mo, an analyst at Canalys, a market research company.