Samsung launches new foldable phones 2:42

(CNN) -- Chris Pantons is what you would call a Google Pixel superfan. This Knoxville, Tennessee, native loves the software, the camera, the virtual assistant, everything. He even credits the phone's car accident detection tool with saving his life a few years ago when he had an accident.

"I've had pretty much every Pixel device," says Pantons, 33, who has posted hundreds of videos on YouTube about Pixel phones and other tech products. "I've influenced a lot of my family to move to Pixel: my brother and sister-in-law, my mother and my wife... And I also made a co-worker go over."

But this is the first year it won't buy Pixel's latest: the Pixel Fold, a foldable smartphone that starts at $1,799. "I would love to have it," he told CNN. "I don't have the finances to do it ... That price for a first-generation device is astronomical."

Earlier this month, Google became the latest tech company to introduce a foldable smartphone, promising to offer customers all the features they expect from a phone, combined with a tablet-sized screen. But Pantons wasn't the only one who freaked out.

"My first car cost $1,800," one user wrote on Twitter. "Google has lost its mind." Another user said they've been saving, knowing that the price of a Pixel foldable phone would inevitably be high once announced.

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"The fact that you can buy a new Pixel, a Pixel tablet and a Pixel Watch for less than the foldable and have multiple devices for use cases is of greater value," Pantons said.

The pricing issue isn't unique to Google. When Samsung launched the Galaxy Z Fold in 2020, it cost $1,999. Its price has dropped a bit, but the latest version of the Z Fold still costs $1,799, the same as the Pixel Fold. Even foldable models from budget brands far exceed $1,000 in foreign markets.

(Credit Justin Sullivan/Getty Images)

By comparison, the flagship iPhone starts at $799, less than half the price of the Pixel Fold. And the classic prepaid foldable phones from the '90s, suddenly back in fashion, can cost as little as $20.

The higher price point is one of the factors limiting the size of the folding market. Samsung currently dominates the category, followed by others such as Motorola, Lenovo, Oppo and Huawei. According to ABI Research, foldable and flexible displays accounted for around 0.7% of the smartphone market in 2021, and in 2022 they are expected to fall just below 2%.

Lowering the price could help boost traction, but manufacturers may struggle to do so in the short term.

Premium Parts

The flexible screen of foldable phones is one of the main 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 screen and a 7.6-inch interior display.

Other exclusive components of folding also raise the cost. The Pixel Fold, for example, moves on a custom-made 180-degree hinge. According to the company, the mechanism is completely removed from under the screen to improve its dust resistance and reduce the overall thickness of the device. This also requires complex engineering and expensive manufacturing.

"The expenses are mainly due to the high cost of components, especially folding screens and hinge technology, which in many cases is a proprietary design," explains David McQueen, research director at ABI Research. "So until volume grows enough for sellers to get scale, prices won't go down anytime soon."

A niche product

Foldable smartphones are still in their infancy. As a result, much of the research and development, and the costs associated with it, are still high for manufacturers.

"Companies often try to recoup their investment at a high price," says Nabila Popal, research director at market research firm IDC.

Foldable phones also remain a niche product for now, and manufacturers are gearing the price to people willing to buy them soon to help offset costs.

An uncertain future

The future of foldable phones remains uncertain. Most apps are not yet optimized for foldable devices. Google's main rival, Apple, has yet to adopt this option; And spending money on a first-generation device with many unknowns is a risky bet for anyone.

Foldable phones are also notoriously fragile. Early versions of the Samsung Galaxy Z Fold, for example, had screen issues. Repairs to foldable smartphones can also be expensive.

But Google's decision to adopt this option may help persuade more consumers to take a chance.

Sean Milfort, a doctoral 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 mark.

"I'm a big fan of the Pixel line and loved the idea of a foldable," he said. "The fact that it comes from Google ... it gives me hope that they will actually invest in that device in a bigger way with Android."

But reluctants like Pantons can wait for it to drop in price.

"If later there's a trade-in offer or it goes on sale, then maybe [buy one]," he said.