Google will have the chance to shake up the North American smartphone market in the coming months when they're expected to launch their first foldable smartphone dubbed the "Pixel Fold" by rumor sites. The price may start at US$1700, about $200 less than the Huawei Mate X3 that is thinner than the iPhone 14 Pro Max.  

Google is reportedly ready to launch its first foldable smartphone sometime in June, challenging Samsung’s market-leading foldable phone business, according to internal communications viewed by CNBC. It plans to announce the device at its annual developer conference, Google I/O, on May 10.

The Pixel Fold, known internally by the codename “Felix,” will have the “most durable hinge on a foldable” phone, according to the documents. It will cost upward of $1,700 and compete with Samsung’s $1,799 Galaxy Z Fold 4.

Google plans to market the Pixel Fold as water-resistant and pocket-sized, with an outside screen that measures 5.8 inches across, according to the documents. Photos viewed by CNBC show that the phone will open like a book to reveal a small tablet-sized 7.6-inch screen, the same size as the display on Samsung’s competitor. It weighs 10oz, slightly heavier than the Samsung Galaxy Z Fold 4, but it has a larger battery that Google says will last for 24 hours, or up to 72 hours in a low power mode.

The Pixel Fold is powered by Google’s Tensor G2 chip, according to the documents. That’s the same processor that launched in the Pixel 7 and Pixel 7 Pro phones last year.

Big Incentives

More interesting perhaps is Google will offer incentives in a bid to convince people to switch to the Pixel Fold, according to documentation. For example, Google plans to offer a trade-in option to swap in a current Pixel, iPhone or an Android-powered phone for a discount on the Pixel Fold. It also plans to offer a free Pixel Watch, the company’s latest smartwatch, to Pixel Fold buyers.

With a smartphone trade-in and free Google Watch offer, Google is likely to temp users of other Android brands in the U.S. and Canada, including Samsung.  

At present, foldable smartphone shipments only reached 1.2% of the market in 2022. However, the new form factor starts to become tempting as prices get closer to a high-end iPhone. At that point, the value story of foldable smartphones becomes clearer.

Apple has patents on record that clearly indicate that they're ready and able to enter this new smartphone category when the shift in the market begins to take shape. Apple has to be watching their Chinese competitors very closely as they begin pushing this new form factor in the premium space where Apple is king.