(CNN) Chris Pantons is what you would call a Google Pixel super fan. The Knoxville, Tennessee native loves software, cameras, virtual assistants, it all. Even him credits The the phone’s car crash detection tool saved his life a few years ago when he was in an accident.
“I own almost every Pixel device,” said Pantons, 33, who has posted hundreds of YouTube videos about Pixel phones and other tech products. “I’ve influenced most of my family to switch to Pixel — my brother and sister-in-law, mom and wife … and I’ve had a co-worker switch too.”
But this is the first year he won’t be upgrading to the latest Pixel offering: the Pixel Fold, a foldable smartphone that starts at $1,799. “I want to own it,” he told CNN. “I don’t have money to do that… [That] the price for a first-generation device is astronomical.”
Earlier this month, Google became the latest tech company expose a foldable smartphone, which promises to give customers all the features they expect in a phone, paired with a tablet-sized display. But Pantons wasn’t the only one feeling sticker shock.
“My first car was $1800,” wrote one Twitter user. “Google [lost] their minds.” Another user said they’re saving up, knowing the price for a Pixel foldable phone will inevitably be high when announced.
“The fact that you can buy a new Pixel, Pixel tablet and a Pixel Watch for less than the Fold and have different devices for use cases is a better value,” Pantons said.
The pricing problem is not unique to Google. When Samsung launched the Galaxy Z Fold in 2020, it cost $1,999. Its price has come down a bit, but the latest version of the Z Fold still starts at $1,799 — the same as the Pixel Fold. Even foldable models from budget brands retail for more than $1,000 in overseas markets.
By comparison, the flagship iPhone starts at $799, less than half the price of the Pixel Fold. And classic 90s-style pre-paid flip phones, which suddenly fashion again, it can cost as little as $20.
A higher price point is one of the factors limiting the size of the folding market. Samsung currently dominates the category, followed by others including Motorola, Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays make up about 0.7% of the smartphone market in 2021, and in 2022 it is expected to fall to only 2%.
Lowering the price could help boost traction, but manufacturers may struggle to do that anytime soon.
Premium parts
The flexible screen found on foldable phones is one of the biggest reasons why they cost so much.
Flexible displays require more engineering and are more expensive to manufacture than traditional displays. And the Google Pixel Fold has two: a 5.8-inch cover display and a 7.6-inch internal display.
The new Google Pixel Fold phone
Other components unique to foldables also increase the cost. The Pixel Fold, for example, moves on a custom-built 180-degree hinge. The mechanism has been completely moved from under the display to improve its dust resistance and reduce the overall thickness of the device, according to the company. It also requires complex engineering and expensive manufacturing.
“The cost is mainly related to the high cost of components, especially foldable displays and hinge technology, which in many cases is a proprietary hinge design,” said David McQueen, research director at ABI Research. “So until volume grows enough that vendors can get scale, prices won’t come down anytime soon.”
A suitable product
Foldable smartphones are still in their infancy. As a result, there is still a lot of research and development, and the costs associated with it ahead of manufacturers as they refine their products.
“Companies often try to recoup their investment with a high price tag,” said Nabila Popal, director of research at market research firm IDC.
Foldable phones remain a niche product for now, and manufacturers are targeting the price for people who want to buy them early to help offset costs.
An uncertain future
The future for foldables remains uncertain. Most apps are still not optimized for foldable devices; Google’s chief rival, Apple, has yet to embrace the option; and splurging for a first-generation device with so many unknowns is a risky bet for anyone.
Folding phones are also notoriously fragile. The first versions of the Samsung Galaxy Z Fold, for example, had screen issues. Fixing for foldable smartphones can also be expensive.
But Google’s decision to accept the option could help encourage more consumers to take a chance.
Sean Milfort, a PhD student at Northcentral University, said he pre-ordered the Pixel Fold because he always wanted a foldable smartphone and didn’t want to leave the Pixel brand.
“I’m a big fan of the Pixel line and I liked the idea of ​​a foldable,” he said. “The fact that it’s coming from Google — because they make Android — gives me hope that they’re really going to invest in that larger form factor Android device.”
But holdouts like Pantons can wait for the chance to drop in price.
“If a trade-in deal eventually becomes available or it’s sold then maybe then [I’ll buy one],” he said.
