'Small folding' is not easy to sell, but 'Huarong Mi OV' doesn't want to miss the future

©️Original by Shenxiang · Author｜Xiao Zhuo

Recently, with the release of Xiaomi MIX Flip, "Huarong Mi OV" has finally gathered in the small folding mobile phone market. News such as "Apple has begun developing a small folding screen iPhone" and "Huawei's nova series of new small folding phones have been revealed" are also continuing to increase the popularity of small folding mobile phones.

It has been four years since the industry’s first small folding product was launched. But contrary to the excitement, until today, the industry is still cautious when it comes to "small folding" - Lei Jun said that the company established a small folding product three years ago, but "it is really not easy to have a good small folding experience." "; Honor CEO Zhao Ming also mentioned when talking about folding products, "It is relatively difficult to break even. "

On the one hand, we are betting together, and on the other hand, we are advancing cautiously. This "two-sidedness" is determined by the characteristics of small folding mobile phones.

In terms of positioning, the current user mentality of small folding mobile phones is not strong enough - it cannot be used for "office" and "business" needs like large folding products, and it is not completely differentiated from traditional candy bars. . In addition, consumers have concerns about product price, battery life, and durability. Small folding mobile phones are still far from "explosion".

Market data directly reflects the "embarrassment" of Xiao Folding. According to Counterpoint Research, in the first quarter of 2024, shipments of large folding models increased by 91% year-on-year, while shipments of small folding models fell by 1% year-on-year.

But at the same time, mobile phone manufacturers really don’t want to miss a potential breaking point. The new flash point is related to whether manufacturers can get rid of the industry's stock and "involution" dilemma, and whether domestic mobile phones can make a breakthrough in challenging Apple. In addition, in the context of the AI ​​wave sweeping the consumer electronics industry, richer product forms also mean more possibilities, and no one wants to “miss” the Xiao Fold.

"Differentiation-Performance-Price",

Balance and Breakthrough

Differentiation, performance and price are the three keys that affect the "explosion" of small folding mobile phones. The three interact and constrain each other, and manufacturers are still exploring the "best balance point."

"Differentiation" refers to the need for manufacturers to create "selling points" for small folding mobile phones, so that their functions and experience are significantly different from those of candy bar phones. Only when the "selling point" is fresh enough and practical, can small folding mobile phones become the main product equivalent to candy bar machines, rather than "beautiful little waste".

Among many attempts, "external screen" is currently the core focus of manufacturers. "External screen" is the screen used when the small foldable phone is in the folded state. It can undertake some mobile phone functions (such as checking notifications, answering calls, checking the time, controlling music playback, etc.), and can also bring a new experience different from that of a candy bar based on hardware linkage (such as the main camera) or specialized software adaptation.

Take the small folding products of OPPO, vivo, Honor, and Xiaomi as examples. Their common idea is to use a larger "external screen" to achieve a richer experience.

Compared with the "fingernail"-sized external screen of the early Galaxy Z Flip, the external screens of today's small foldable products are generally much larger. OPPO Find N3 Flip and vivo X Flip both have a rectangular external screen. Users can use the external screen to complete basic functions such as viewing messages, quick replies, and taking selfies. They can also set pet wallpapers on the external screen and interact with pets.

OPPO Find N3 Flip (left) and vivo sex.

The external screen size of Honor Magic V Flip is 4 inches (the screen of iPhone 4 is 3.5 inches). Except for the lens, the entire area is occupied by the "external screen". Xiaomi MIX Flip is in a similar situation. Because of its large size, users can input with a full keyboard on the “external screen”, and the App also has more room for adaptation (such as using the “external screen” to browse Xiaohongshu). Xiaomi MIX Flip has an independent earpiece and microphone for the external screen. Users can make calls without opening it. It also adds a "Polaroid" peripheral to the product to take advantage of the small foldable form factor.

Magic V Flip (left) and MIX Flip (right) both adopt larger external screen designs: more functions and support for full keyboard input

In the "Huarong Mi OV" camp, Honor and Xiaomi are the latest manufacturers to launch small foldable phones. The product ideas of the two reflect the industry’s insight into the differentiated value of small foldable products to a certain extent. Zhao Ming believes that "the closed screen is Xiaozhe's unique value proposition." In its view, if the closed small screen is unavailable, or in most cases users have to use the internal screen, then the small folding phone becomes a traditional phone.

The iterative consensus corresponds to new challenges: larger "external screens" and richer experiences require stronger "performance" to support them. The natural product characteristics of small folding mobile phones make it more difficult to achieve breakthroughs in "performance".

Take battery life as an example. Small folding mobile phones have a special shape. The hinge structure occupies the internal space and compresses the battery space. In order to match the folding design, the battery also needs to be specially shaped or divided into multiple parts to be placed on both sides of the device. These characteristics not only limit the battery capacity of small foldable phones, but may also affect battery efficiency.

An "external screen" that is larger, clearer, has a higher refresh rate and has more ways to play will inevitably generate more power consumption. Compared with candy bar machines, small foldable mobile phones face two major difficulties: "high power consumption" and "battery limitations". Manufacturers need to use more advanced battery technology, equip with fast charging and optimize application power consumption to make the "external screen" a highlight instead of a burden.

In addition to battery life, manufacturers also need to find better solutions in terms of heat dissipation management, high performance (especially in gaming scenarios), and interactive experience between internal and external screens. And "better solutions" require more advanced configurations and in-depth software optimization, which all mean an increase in product costs.

The "price" problem arises: How can manufacturers make small folding mobile phones more affordable while taking into account "differentiation" and "performance"?

Compared with candy bar phones, small foldable phones themselves have two incremental costs: hinges and foldable screens. Although with the development of supply chain technology and the growth of product scale, the price of small folding mobile phones has dropped significantly compared with when it first came out, but to the public, the price of 6,000 yuan per unit makes small folding mobile phones still look like a "luxury product" ".

In the problem of balance and breakthrough of "differentiation-performance-price", different manufacturers have different priorities.

Still taking Honor and Xiaomi as examples, Honor is relatively aggressive in terms of price. The starting price of Magic V Flip is only 4,999 yuan, which is significantly lower than the pricing of its peers. This pricing reflects the company's determination to quickly open up the market with "cost-effectiveness". Zhao Ming once said that this pricing is "extremely difficult" for Honor, and it must sell at least 1 million units to achieve breakeven.

In contrast, Xiaomi's logic is to develop comprehensively in "differentiation-performance-price". It not only uses large "external screens" and advanced hardware (such as the third generation Snapdragon 8), but also tries to ensure price competition. force.

"Increment-Competition-AI Future"

Missing is more terrible than making a mistake

In general, whether it is the positioning of small folding mobile phones or specific product forms, various manufacturers are still in the exploratory stage. . However, judging from the market growth, competition with Apple and the potential possibilities brought by AI, manufacturers will inevitably continue to invest in exploration.

The smartphone market is experiencing a transition from downturn to recovery. IDC data shows that in 2023, global smartphone shipments will decrease by 3.2% year-on-year, while Q2 in 2024 will increase by 6.5% year-on-year. In the smartphone market, foldable screen mobile phones are the fastest growing segment. By betting on small foldable phones, manufacturers want to capture both the "beta" of the mobile phone market's recovery and the "alpha" of growth brought about by foldable screens.

At the same time, domestic mobile phone manufacturers continue to promote the two major narratives of high-end and "challenge Apple". Small folding mobile phones are a market that Apple has not yet entered. With the consumer market craving for new ideas, Huarong Mi OV still has the possibility to seize the opportunity and shape a new trend.

Facing the future, the trend of AI hardware implementation is also strengthening the necessity for manufacturers to bet on small foldable devices.

The wave of AI hardware is surging, the industry is at an important node of technological innovation, and small folding mobile phones represent a new form of smart terminal products. For manufacturers, richer product forms also mean richer interaction possibilities, and even a layout related to the future.

To paraphrase Google’s statement in a recent conference call, the risk of “underinvestment” in AI is far greater than the risk of “overinvestment”. Similarly, for domestic mobile phone manufacturers who are eager to continue to make breakthroughs, small folding mobile phones carry the manufacturers' multiple expectations in terms of "increment-competition-AI future" and other aspects. The cost of "missing" will be greater than "making a mistake".

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