Reports indicate that Apple's first foldable iPhone is scheduled to commence mass production by the end of July. Despite recent rumors of delays due to hinge issues, the company still plans to launch the new device in September as originally scheduled. According to a previous research report from AJ Securities, under an optimistic forecast, Apple's foldable phone sales could reach 14 million units by 2026. The iPhone's premium positioning and massive sales volume are expected to drive the entire supply chain towards an inflection point of rapid growth.
Information from the supply chain reveals that Apple has finalized core specifications for the foldable iPhone, including the display, casing, and structural components, with the product entering the mass production preparation phase. The initial production run will be handled by Foxconn. Apple completed the first round of trial production in April, with formal mass production expected around late July, keeping the plan for a September launch largely on track.
The foldable iPhone will utilize foldable OLED panels supplied by Samsung Display, along with components like hinge modules, cover glass, and structural parts. Samsung Display has recently received Apple's approval to supply the first batch of foldable OLED modules from its factory in Vietnam. While earlier reports suggested hinge issues might cause product delays, some analysts believe that even if Apple launches the new phone in September as planned, the official sales date might still be postponed.
Apple Inc is expected to implement stricter quality control measures before mass production for its first foldable product. With the addition of a foldable model to its lineup, Apple may adjust the annual release schedule for the iPhone. The September launch event is anticipated to focus primarily on the Pro series and the foldable model, with the standard version of the iPhone potentially being released separately at a different time.
A source within Apple's supply chain stated that this year's launch lineup will mainly consist of the Pro, Pro Max, and Ultra (foldable) models. Following the integration of the foldable iPhone into the existing product portfolio, the standard iPhone model might be delayed until the spring of next year.
Market expectations for Apple's potential foldable iPhone are high. If launched, this product would represent one of the most significant form factor changes in iPhone history. Surveys indicate that approximately 27% of global iPhone users are "extremely interested" in foldable devices, with this figure nearing 40% in the Chinese market. Bank of America analyst Wamsi Mohan also noted that as a major form innovation, initial demand for a foldable iPhone is expected to be strong, with the supply chain preparing for shipment volumes of 10 to 20 million units, significantly higher than competitors.
Counterpoint Research's "Foldable Smartphone Market Forecast" report suggests that, supported by factors including Apple's anticipated entry, the continued premiumization of the smartphone market, and increased OEM participation, global foldable smartphone shipments are expected to grow by 20% in 2026. As Apple prepares to launch its first foldable iPhone, the foldable smartphone market is projected to enter a new competitive phase by 2026.
AJ Securities stated that foldable phones are a core innovation category in the smartphone sector, with hinges and flexible display modules as key components, effectively balancing the core conflict between large-screen experience and device portability. Under an optimistic forecast, Apple's foldable phone sales could reach 14 million units by 2026. The iPhone's premium positioning and massive sales volume are expected to drive the entire industry chain towards an inflection point of rapid development.
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Sunny Optical Technology (Group) Company Limited (HKG: 2382): A global leader in optical lenses, mobile phone camera modules, and automotive lenses. It supplies high-end camera modules and optical lenses for the iPhone, iPad, and Mac, serving as a core supplier for Apple's imaging system. The company forecasts its 2025 net profit attributable to owners to be approximately RMB 4.589 billion to RMB 4.724 billion, representing an increase of about 70% to 75% compared to the approximately RMB 2.699 billion profit in 2024.
Q Technology (Group) Company Limited (HKG: 1478): Focuses on mobile phone camera modules, fingerprint recognition modules, and automotive imaging systems. It supplies mid-to-low-end camera modules for the iPhone and is deeply integrated into Apple's supply chain for mid-range models. The company expects its 2025 comprehensive profit to increase by approximately 400% to 450% year-on-year.
AAC Technologies Holdings Inc. (HKG: 2018): A global leader in acoustics, providing speakers, receivers, microphones, linear motors, and RF components. It is a core supplier of acoustic components for the iPhone, iPad, Mac, and AirPods, and the exclusive supplier for some high-end linear motors.
Cowell E Holdings Inc. (HKG: 1415): A core supplier of camera modules, structural components, and acoustic components for Apple. J.P. Morgan believes the adjusted iPhone product lineup in the second half of this year will benefit Cowell due to its higher business proportion from Pro and Pro Max models and its expanding market share. The bank expects the company to gain additional share in the main rear camera module field by 2027. It has raised its 2025-2027 profit forecasts by 3% to 9%, anticipating year-on-year profit growth of 23% and 26% in 2026 and 2027, respectively, and believes the company's valuation deserves a re-rating, reiterating an "Overweight" rating with a target price of HK$44.
Lens Technology Co., Ltd. (HKG: 6613): A core supplier of glass covers and metal frames for the iPhone, iPad, Mac, and Watch. It will commence several new Apple projects in the second half of 2025. Its UTG (Ultra-Thin Glass) benefits from the foldable iPhone, with a significant increase in value per unit.
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