Analyst house Display Supply Chain Consultants (DSCC) reported shipments of screens for foldable smartphones declined year-on-year for the first time in Q3, though cited the potential launch of an Apple device in 2026 as providing some optimism.

It noted the market for foldable smartphone displays had increased by at least 40 per cent per year between 2019 and 2023, though in the current year the growth figure is expected to be 5 per cent. In 2025 the market is expected to contract.  

The analyst company, which is a division of Counterpoint Research, stated the foldable segment continued to be dominated market leaders Samsung and Huawei, with other Chinese brands said to be “pulling back”.

Explaining the recent decline, it highlighted slower than expected sales of the Samsung Galaxy Z Flip 6, released among a slew of other devices from the manufacturer in July. Demand was apparently down on the previous model and concentrated in Europe and South Korea.

Samsung’s foldable panel procurement is expected to be at its lowest level since 2021 this year, the company stated.

Another factor cited for the slowing market were shipments to Huawei being later than expected due to a change in handset release timings, along with the ongoing impact of trade restrictions on its smartphone business.

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Some smartphone brands are discontinuing their clamshell efforts due to lack of price elasticity, limited margins, modest sales and overheating concerns

Display Supply Chain Consultants

Moving forward it expects Huawei and Samsung to continue to account for the vast majority of foldable panel procurement, while some others scale-back efforts.

DSCC highlighted “some smartphone brands are discontinuing their clamshell efforts due to lack of price elasticity, limited margins, modest sales and overheating concerns, while some smartphone brands are exiting the infolding market due to lack of demand from the high price points”.

“Given the excitement and opportunity in incorporating AI capabilities, several brands are focusing on that opportunity rather than alternative form-factors.”

Despite the dour outlook for 2025, DSCC pointed to reasons for optimism beyond then should Apple enter the foldable market, which it predicts will happen in H2 2026, along with potential new use cases driven by improvements in the form-factor.

It predicts 2026 to be a “record year for foldables”, with more than 30 per cent growth and an expectation “at least one other brand” would deploy a tri-fold model.