East Asian Technology Intelligence
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This story ran in Issue #91, alongside three other stories.
Apple is entering the foldable phone market with the “iPhone Ultra.” This move is not about leading in technology. Instead, Apple wants to prove the foldable design works for the mass market. This step will help East Asian suppliers. Samsung and Huawei have sold foldables as premium devices for years. Now, Apple will make foldables mainstream. This shift will boost demand for parts across the supply chain. Apple is not making a giant leap here. It is making a planned move to tap into an established market. This strategy is similar to how Apple joined the large-screen phone market ten years ago.
Japanese media, including CNET Japan, shows great excitement for this launch. Writers expect Apple’s brand power to spark new consumer interest in foldables. Up to now, foldables have remained a small market. This is true despite strong phones from Korean and Chinese firms. The focus of the launch is not on new technology from Apple. Instead, the main story is the financial boost for parts suppliers. Suppliers of screens, hinges, and flexible materials will gain a lot of business. Apple’s entry promises them big sales volumes.
The key detail is the planned production run of 10 million units. This large number will quickly make Apple a major force in the foldable parts market. It will help Apple secure long-term contracts with key suppliers. Many of these suppliers are based in East Asia. The move will benefit Korean screen makers and Japanese material science firms. A rising tide lifts all boats, and this tide will lift high-precision parts makers in Japan. These component makers will benefit more than the companies that assemble the final phones.
Some people assume this launch aims to challenge current leaders like Samsung directly. That idea is wrong. Apple often refines existing technology for a wider audience rather than being first to market. The pressure from Apple will fall hardest on companies like Google. Google’s foldable Pixel phone has struggled to compete with mature devices from Samsung.
In the future, look for production numbers in the quarterly reports from Foxconn and Pegatron. These reports will show actual shipments rather than early estimates. Also, watch companies like Japan Display Inc. (JDI) or LG Display. Look for new factory plans or long-term supply deals for flexible OLED screens. The stock prices of these firms will show the true impact of the phone better than Apple’s keynote speech.
For the wider picture, see Japan Semiconductor Ecosystem.
This story appeared in AsiaAI.FYI Issue #91.
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