With the imminent mass production of Apple's foldable iPhone, the Electronic ETF (515260) offers exposure to its core supply chain.
On July 7th, multiple sources confirmed that Apple's first foldable iPhone has officially entered the mass production stage, marking its formal entry into the foldable display market. Dongguan Securities noted that driven by factors including user experience optimization, lower price points, tri-fold screen technology, and new Apple products, foldable smartphone shipments are expected to maintain rapid growth. The firm recommends focusing on supply chain segments with significantly increased value, such as displays (foldable screens, cover glass) and hinges (MIM, manufacturing).
Regarding investment vehicles, the Huabao Electronic ETF (515260) and its feeder funds passively track the Electronic 50 Index. It is heavily weighted in the semiconductor and consumer electronics sectors, aggregating exposure to popular themes like PCBs, MLCCs, glass substrates, memory chips, and semiconductor equipment. Its top holdings include companies such as Luxshare Precision, Cambricon, Foxconn Industrial Internet, and SMIC, making it an efficient tool for gaining broad exposure to core electronic sector assets.
Data shows the underlying index of the Huabao Electronic ETF (515260) is deeply linked to global tech leaders. As of the end of June, the weightings for the Apple, NVIDIA, and Google supply chains were 45.46%, 25.55%, and 18.98% respectively, positioning it to potentially benefit from the industrial expansion and technological innovation of these tech giants.
As of the end of June, the Huabao Electronic ETF (515260) had an asset size of 1.109 billion yuan, making it the largest ETF among the two tracking the same index in the market.
Market Trend: Apple's Strong Entry Reshapes Competitive Landscape
Industry sources indicate that Apple has finalized key specifications for components like the display, casing, and mechanical parts, with plans to commence mass production in late July. On the supply chain side, leading manufacturer Foxconn has initiated large-scale recruitment to build up the workforce needed for assembling the new device, specifically for the foldable screen assembly. While previous rumors suggested a potential delay due to hinge issues, feedback from the supply chain indicates Apple is still aiming for a Fall 2026 launch as originally planned.
Apple's significant entry is expected to reshape the foldable display market. Institutions forecast that driven by Apple's procurement orders, global foldable smartphone panel shipments in 2026 could grow 51% year-over-year to 28 million units. Another report suggests that, leveraging its strong brand influence, Apple is projected to capture nearly 20% of the foldable market share in 2026, significantly squeezing competitors' space. Analyst estimates point to assembly shipments of 7 to 8 million foldable iPhones in the second half of 2026. As Apple's supply chain companies begin small-batch shipments and panel inventory builds up, the foldable screen industry chain is set for significant growth, with related companies in optics, hinges, and flexible OLED segments poised to benefit.
Sector Analysis: Sharp Rise in Core Component Value
The mass production stage of Apple's first foldable iPhone could mark a pivotal turning point for the industry. Apple plans to launch its foldable phone in 2026, with optimistic sales forecasts reaching 14 million units, which could drive the foldable screen sales penetration rate past a high level of 6.44%.
Hinges and flexible display modules are the core of foldable phones, contributing significantly to cost increases. Compared to non-foldable phones, the value increments for display modules, mechanical/electromechanical components (including hinges), and memory are approximately 194%, 177%, and 38.6%, respectively. Among flexible cover materials, Ultra-Thin Glass (UTG) is gradually replacing Colorless Polyimide (CPI) due to its performance advantages, with an expected compound annual growth rate of 14.9% from 2025 to 2028. As a key component, the global hinge market is projected to grow at a compound annual rate of 21.7% from 2024 to 2032, with companies like AAC Technologies and Jiangsu Gian Technology deeply involved.
Furthermore, Apple's new flagship is set to reintroduce a titanium frame. Titanium alloy is twice as strong as aluminum alloy and lighter, perfectly matching the demands of foldable hinges and helping to keep the overall device weight under 250 grams. The mass production of Apple's foldable phone will reshape the value distribution within the supply chain, highlighting companies with core competitiveness such as Lens Technology, Jiangsu Gian Technology, and Longsys.
Investment Focus: Opportunities in Displays, Hinges, and New Materials
The formal entry into mass production for Apple's first foldable iPhone signifies a major development inflection point for the industry. Driven by Apple's powerful brand and premium positioning, global foldable phone panel shipments in 2026 are forecast to grow 51% year-over-year to 28 million units. Apple is expected to capture nearly 20% market share, propelling the entire industry chain into a period of rapid expansion. Compared to non-foldable phones, the value increase for core components like display modules, hinges, and memory in foldable models is as high as 194%, 177%, and 38.6%, respectively, significantly boosting supply chain profitability.
Within this, UTG is accelerating its replacement of CPI due to superior performance, with its market size continuing to grow at a high rate. As a critical component, the hinge market is expected to expand to $15.4 billion by 2032, with a compound annual growth rate of 21.7%. Additionally, Apple's introduction of titanium alloy material to optimize the device's feel further solidifies its high-end competitiveness. Key supply chain companies like Lens Technology, Jiangsu Gian Technology, and Longsys are positioned to directly benefit from the sales surge, presenting investment opportunities characterized by both volume and price increases, with industry sentiment significantly improving.
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