[News analysis] Smartphone industry expected to erupt into competition between rollables and foldables in 2021

Posted on : 2021-01-04 17:45 KST Modified on : 2021-01-04 17:45 KST
Observers speculate as to who will fill the gap left by Huawei
An image for a pilot model for a rollable phone released by Chinese firm Oppo in November. (Oppo website)
An image for a pilot model for a rollable phone released by Chinese firm Oppo in November. (Oppo website)

The big focus with smartphones this year is on design innovations incorporating state-of-the-art display technology. Industry observers predict a clash for market dominance between rollable and foldable phones. As Huawei experiences a steep drop in production amid US sanctions, the key question this year concerns who will fill the gap the Chinese firm has left behind.

Rollable vs. foldable phones

LG Electronics is expected to unveil its rollable phone at CES 2021, the world’s largest tech event, which kicks off Jan. 11. Rollable phones look similar to regular smartphones, but have a screen that is rolled up to one side and can be spread out as needed. Resembling a roll of camera film that can be pulled out, they have been compared to scrolls. It’s a second design innovation by LG, coming on the heels of its Wing, a phone launched last year with a screen that can be rolled to one side.

On its Android developer site, Google recently unveiled an emulator for LG Electronics’ rollable smartphone. The video shows a 6.8-inch screen being pushed to one side to produce a 7.4-inch screen. The Chinese smartphone maker Oppo was the first to present a rollable prototype in November of last year, but LG is expected to be the first to launch an actual product.

Samsung Electronics has focused more on diversifying its foldable phones. Observers say the global market for foldables is poised for growth. The market research firm Counterpoint Research has projected foldable phone shipments of over 5.6 million units this year, up from 2.8 million units in 2020. For this reason, many are predicting an intense competition between LG Electronics’ rollable phones and Samsung Electronics’ foldable phones.

Who will fill the gap left by Huawei?

While the global smartphone industry struggled last year amid the effects of COVID-19, prospects for 2021 appear bright. In a recent report, the market research firm Strategy Analytics (SA) predicted global smartphone shipments of over 1.47 billion units this year, up by 12% from last year. With Huawei experiencing a steep decline in shipments amid US sanctions, industry observers are predicting a hotter competition between Samsung Electronics, Apple, and the Chinese smartphone companies Oppo, Vivo, and Xiaomi.

In a recent report, Hi Investment & Securities analyst Ko Ui-young projected Huawei’s smartphone shipments would decline from over 190 million last year to around 40 million this year. In a report published last December, Shinyoung Securities analyst Moon Ji-hye predicted Samsung Electronics’ smartphone shipments would exceed 300 million units this year, an increase of 15% from 2020.

“With the US sanctions against Huawei creating a gap in terms of premium flagship smartphone supplies in 2021, aggressive production plans have been presented not just by Chinese smartphone manufacturers like Xiaomi, Oppo, and Vivo, but also by Apple,” Moon observed.

Continued growth for budget phones, tablets, and laptops

Amid the recession brought about by the COVID-19 pandemic, last year saw the emergence of many budget smartphones emphasizing performance at a low cost. In September, Samsung Electronics released a lower-end version of its Galaxy S20, a strategic model for boosting sales in the latter half of the year; around the same time, LG Electronics launched three models of its lower-end K series. The trend appears likely to continue in 2021, with some predicting Samsung will launch budget foldables.

In a Samsung Electronics Newsroom message on Dec. 15, Roh Tae-moon, director of mobile communications, announced plans to “focus on diversifying and popularizing our foldable products so that more customers can experience innovative foldable devices.”

Continued growth also appears likely for tablets and laptops, which saw major growth last year as the pandemic ushered in a wave of non-contact services and telecommuting.

By Song Chae Kyung-hwa, staff reporter

Please direct comments or questions to [english@hani.co.kr]

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