The Spillover Effect of a $2,000 iPhone: The Value of Foldable Components Reassessed

[Financial News] Expectations are growing that South Korean component suppliers will benefit as Apple’s first foldable smartphone, the “iPhone Duo,” ushers in the era of $2,000 smartphones.
The roughly $900 premium over existing flagship models creates room for about $400 in additional material costs per unit. Analysts, in particular, expect the value of display components—which determine the foldable phone’s crease and durability—to rise.
According to Samsung Securities on the 10th, Apple set the starting price of the 256GB iPhone Duo at $1,999.
Lee Jong-wook, a researcher at Samsung Securities, forecast Apple’s foldable shipments at 6 million units this year and 15 million units in 2027.
Samsung Securities focused on the price rather than sales volume. As prices for key components—including memory, application processors (APs), cameras and displays—rise, the brokerage assessed that Apple has raised the upper limit of smartphone prices through the new foldable form factor.
Taking the price increase into account, Samsung Securities estimated that Apple could spend about $400 more per unit on components than it does for existing flagship models.
The benefits are expected to be concentrated among suppliers in the display and mechanical-component supply chains.
Fine M-Tec supplies backplates that control the folding position of foldable displays and suppress creasing. This year, it also switched from conventional chemical etching to laser drilling, strengthening its microfabrication capabilities. According to Samsung Securities, its customer-specific market shares are estimated at 80% to 90%, while sales to new customers are expected to reach about 180 billion won.
BH is also expected to see the selling price of its flexible printed circuit boards (FPCBs) rise by about twofold from current levels, as the display area of the foldable iPhone is approximately 2.8 times larger than that of a standard iPhone.
Lee said, "The additional material costs will be concentrated in display-related components and mechanical parts resulting from the change in form factor," adding, "Valuations of smartphone component stocks are low, and earnings per share growth is clear."
He added, "Ultimately, the key point to watch with the iPhone Duo is not sales volume, but the 'additional component-cost headroom created by the $2,000 price tag.' As Apple opts for a more expensive iPhone, the earnings leverage of key foldable-component suppliers such as Fine M-Tec is also expected to increase."


[email protected] Kim Kyung-ah Reporter