Why are foldable phones so expensive?

The High Cost of Folding Technology

Foldable phones, once a niche luxury, are entering a new phase characterized by both increased adoption and persistent high prices. While shipments are projected to double to 36 million units by 2028, according to Omdia, the cost remains a significant barrier for many consumers. This expense is not arbitrary; it stems from the complex engineering, novel materials, and intricate manufacturing processes required to create devices that can bend and unfold without compromising durability or functionality.

Companies like Samsung and Google have invested heavily in developing this technology, with their latest models commanding premium prices. The promise of a larger screen in a pocketable form factor is appealing, but the current price point positions foldable phones as aspirational devices rather than mainstream alternatives. The market's growth, however, suggests that despite the cost, a growing segment of consumers is willing to pay for this innovative form factor.

How Foldable Phones Work

The core innovation in foldable phones lies in their flexible displays and robust hinge mechanisms. The display itself is typically made of an ultra-thin glass (UTG) layer or a flexible plastic polymer, which allows it to bend repeatedly without cracking. Beneath this display lies a complex array of layers, including touch sensors and the actual OLED pixels, all designed to withstand the stress of folding.

The hinge is equally critical. It's a sophisticated piece of engineering that allows the screen to fold inwards or outwards, often with a gap-minimizing design to prevent debris from entering. These hinges can involve dozens of interlocking gears and precisely engineered components to ensure smooth operation and durability over thousands of folds. The internal components, such as the battery and motherboard, are also segmented or designed to accommodate the folding motion, adding further complexity to the device's architecture.

Who is Affected and How

Primarily, early adopters and tech enthusiasts are the main consumers of foldable phones. These users are often willing to pay a premium for cutting-edge technology and the novel user experience a foldable offers, such as a larger screen for multitasking or media consumption that fits into a smaller device profile. For them, the increased cost is a trade-off for being at the forefront of mobile innovation.

However, the high price tag means that the majority of consumers are excluded. For the average smartphone user, the cost of a foldable device, often exceeding $1,500 USD, is prohibitive compared to traditional flagship smartphones that offer comparable performance and features at a lower price. This price disparity limits the impact of foldable technology on the broader market, keeping it a luxury segment rather than a mass-market phenomenon. As manufacturing scales and technology matures, prices are expected to decrease, eventually making them accessible to a wider audience.

What Happens Next

The future of foldable phones hinges on several factors, primarily the continued reduction in manufacturing costs and improvements in durability. As more manufacturers, including potentially Apple, enter the foldable market, increased competition could drive down prices. China has already seen significant growth in its domestic foldable market, with shipments rising by 173 percent in the second quarter of 2026, indicating a growing demand and supply chain maturity in that region.

For foldable phones to become mainstream, they need to achieve price parity with high-end traditional smartphones and demonstrate long-term reliability. Innovations in display technology, such as more resilient flexible screens and simpler hinge designs, will be crucial. If these advancements occur, and if brands like Apple introduce compelling foldable devices, the market could see a significant shift, making foldable phones a more common sight in consumers' hands within the next five to ten years. Conversely, if costs remain stubbornly high and durability concerns persist, foldables may remain a niche product category.