As the smartphone market evolves, one of the most talked-about innovations in recent years has been the advent of foldable phones. Major players like Samsung, Huawei, and Motorola have all released their iterations of this cutting-edge technology, but one notable absentee from this trend is the tech startup Nothing. Despite the buzz around foldables, Nothing’s co-founder and head of marketing, Akis Evangelidis, has expressed reservations about the current state and future of foldable devices.
In an exclusive interview with FE.com, Nothing’s leadership laid out a clear rationale for their hesitance to dive into the foldable market. Akis acknowledge the allure and novelty of the foldable form factor, describing it as “interesting” and noting its gradual uptake among consumers. However, he also pointed out that the technology is still in its nascent stages and has yet to achieve widespread acceptance.
“It’s an interesting form factor. It’s gradually picking up. But it will still take time to be fully democratised,” the marketing head stated. This perspective underscores the belief that while foldables are garnering attention, they have not yet reached the level of accessibility and refinement needed to appeal to a broader audience.
One of the primary concerns highlighted is the incremental nature of improvements in foldable technology. The marketing head remarked, “Even now, foldables are quite hard from a user standpoint to see the differences. The iterations are becoming quite incremental.” This suggests that the enhancements from one generation of foldables to the next are minor, making it difficult for consumers to justify the often hefty price tags.
Additionally, there is a critique of how aggressively some brands are pushing foldables onto the market. “There is definitely some sort of urge to try to, you know, [prove] this is something new, this is something user wants and so on, but the market reception doesn’t meet against how aggressively [some] brands are pushing it onto users in a way,” Akis explained. This indicates a disconnect between manufacturer enthusiasm and actual consumer demand.
Another significant point of contention is the user experience associated with foldables. Even with devices like the flip phone, there is still a “bit of friction associated to it.” The process of taking out the phone and unfolding it can be cumbersome and is not yet optimised to enhance the user experience. This lack of seamless integration is a crucial factor in Nothing’s decision to hold off on entering the foldable market.
For Nothing, innovation is not just about following the latest trends but about thoughtfully integrating new technologies into products that offer a unique and optimised user experience. They are focused on creating devices that stand out not because they follow the latest craze, but because they deliver on a refined user experience. “For us, we don’t really need that sort of wow factor or say oh, we also have a foldable like everyone else. Our approach to product [is different]. We don’t need to get into that race,” he asserted.
Nothing’s CEO, Carl Pei, previously echoed similar sentiments, stating, “I don’t think consumers walk around saying, hey, I wish my phone could fold. I think it’s an innovation that the manufacturers are pushing onto the consumer.” Pei’s statement reflects a belief that the drive for foldable technology is more manufacturer-led than consumer-driven, and that the market has yet to show a genuine, widespread demand for such devices.
Numbers tell a different story
The foldable phone market is booming, with Counterpoint Research reporting a record-breaking 49 percent year-over-year growth in Q1 2024.
This surge is fuelled by Chinese brands like Huawei, Honor, and Motorola.
For the first time ever, book-style foldable phones outsold the classic clamshell design. This shift comes as consumers embrace the larger screen real estate offered by book-style devices.
Samsung, the previous leader, saw its market share plummet from 58 percent to just 23 percent. Meanwhile, Huawei surged ahead with a whopping 275 percent growth, thanks to its focus on 5G-enabled foldables. This shift in dominance marks a major turning point in the foldable phone landscape.
The growth extends beyond China. Honor’s global market share skyrocketed to 12 percent, while Motorola captured an 11 percent slice of the pie. These numbers point towards a more diverse foldable phone market in the future.