Western Securities: Apple enters the foldable screen market, focusing on opportunities in the industrial chain layout

Zhitong
2025.06.16 08:01
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Western Securities released a research report indicating that Apple plans to launch its first foldable iPhone in 2026, marking its entry into the foldable screen market. The global shipment growth rate of foldable smartphones in 2023 is 6%, with the Chinese market accounting for 46% of the share. The report suggests paying attention to investment opportunities in key components related to foldable screens, such as UTG and hinges, believing that Apple's entry will drive innovation and upgrades in the industry

According to the report released by Western Securities, based on IDC data, the global shipment growth rate of foldable smartphones is 6% in 2023. The Chinese market leads the development of the foldable smartphone industry, with 46% of global foldable shipments coming from China in the first to third quarters of 2024. Currently, there are many players in the foldable screen field, including Huawei, Samsung, and OPPO. While the Android camp is competing, Apple (AAPL.US) is accelerating its layout and plans to launch its first foldable iPhone, expected to be released in 2026. There is optimism about key components such as foldable UTG and hinges, as well as new processes like 3D printing, and it is recommended to pay attention to related investment opportunities.

The main viewpoints of Western Securities are as follows:

Apple's entry into the foldable screen product market is expected to drive industry innovation and upgrades

In recent years, the growth rate of the smartphone market has slowed down, and the foldable smartphone market is expected to become the next breakthrough point. According to IDC data, the global shipment growth rate of foldable smartphones is 6% in 2023. The Chinese market leads the development of the foldable smartphone industry, with 46% of global foldable shipments coming from China in the first to third quarters of 2024. Currently, there are many players in the foldable screen field, including Huawei, Samsung, and OPPO. While the Android camp is competing, Apple is accelerating its layout and plans to launch its first foldable iPhone, expected to be released in 2026.

Key Link: UTG

  1. UTG industry chain overview. The current mainstream materials for screen cover plates are mainly CPI and UTG, with UTG composite cover plates surpassing CPI to occupy a mainstream position. The production process routes for UTG cover plates are divided into one-time forming and secondary forming (thinning) methods. The one-time forming method has higher process barriers, and the current production processes mainly include float glass, overflow down-draw, and narrow gap down-draw methods; the secondary forming (thinning) method is relatively easier but has issues such as low yield, difficulty in preparing large sheets, and waste of raw materials. The domestic processing of UTG is accelerating, with representative domestic companies including Kaisheng Technology and Changxin Technology.

  2. Ultra-thin foldable uneven thickness glass UFG. The UTG + film solution has drawbacks such as creases and insufficient hardness, and the next generation mainstream solution may be the ultra-thin foldable uneven thickness glass UFG solution.

Key Link: Hinges

  1. Hinge industry overview. Compared to straight-screen phones, foldable smartphones add hinge structures, resulting in more structural components, more complex processes, and higher value. From a structural perspective, current Android foldable devices mainly use U-shaped hinges and droplet-shaped hinges; from a process perspective, MIM technology is mainly used. 2) Apple's entry promotes hinge innovation. Innovation one: Liquid metal is expected to be introduced. Innovation two: There is potential for iteration into the titanium alloy era. Innovation three: 3D printing may become a future trend.

Investment Recommendations

Given Apple's global sales scale and its innovation requirements for products, as Apple accelerates its layout in the foldable smartphone market, it may significantly boost global foldable smartphone sales on one hand, and on the other hand, it is expected to lead the innovation and upgrade of the foldable industry chain. In summary, there is optimism about key components such as foldable UTG and hinges, as well as new processes like 3D printing, and it is recommended to pay attention to related investment opportunities. Related targets: Lingyi Technology (002600.SZ), Lens Technology (300433.SZ), Jingyan Technology (300709.SZ), Tonglian Precision (688210.SH) Risk Warning

The technology iteration of the foldable smartphone industry chain is not as expected, terminal demand growth is slowing down, macroeconomic growth is below expectations, and changes in the international environment

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