‘Inevitable’ That Apple Will Jump Into Foldable iPhones, Says DSCC CEO

Foldable smartphone panel unit shipments are expected to grow 454% this year to 3.1 million, Display Supply Chain Consultants CEO Ross Young told the virtual Display Market Outlook Conference Wednesday. Panels for the Samsung Galaxy Z Flip and Z Fold2 dominate the market, he said. Growth was lower than expected because Commerce Department export restrictions on Huawei prevented the company from introducing its Mate X2 in-folding smartphone as planned in Q4, he said. The Mate X2 was to have sourced panels from Samsung Display and BOE Technology Group. Its cancellation was a significant setback to the foldable smartphone market because Huawei was poised to introduce it in volumes exceeding 500,000 units, said Young. It assures Samsung will maintain market leadership in foldables, at least until Apple jumps in with a foldable iPhone, he said. 5G “finally took off” in foldables in 2020's second half with Samsung’s launch of the Z Fold2 and Z Flip 5G and Motorola’s debut of the Razr 5G, he said. In 2020, 52% of the foldables shipped will be 4G models, but 5G is expected to “dominate” in 2021 and beyond, he said. DSCC is forecasting Apple will field its first foldable iPhone in 2023 with a clamshell design, followed by an in-fold model in 2024, said Young. “There’s still time for the schedule to get pulled in” to 2022, he said. Apple’s iPhone supplier Foxconn is believed to be testing “large volumes of foldable panels ” this quarter, he said. Foxconn didn't respond to questions. “We think it’s inevitable that Apple will get into this market,” said Young. “It’s a very high-end, profitable segment. I don’t think they want to leave it to Samsung, who’s lacking competition. Given Samsung’s limited sales in the U.S., we think Apple could grab a lot of share with foldables in the U.S. if they can be convinced it’s a durable product.” DSCC expects Apple would source foldable panels from Samsung Display, said Young. Apple didn’t comment.