What is a foldable phone and why is it significant?

A foldable phone is a smartphone with a flexible display that can be folded in half. Unlike traditional smartphones with rigid screens, these devices use advanced flexible OLED technology and specialized hinges. They're significant because they represent the first major form factor innovation in smartphones in years, potentially creating a new growth cycle in the mature mobile market. Samsung's introduction of more affordable models signals that this technology is moving from a niche luxury item to mainstream adoption.

What are flexible OLED displays?

Flexible OLED (Organic Light Emitting Diode) displays are screens made from organic materials that emit light when electricity is applied. Unlike traditional LCD screens, they don't require a rigid backlight, making them bendable. These displays are essential for foldable phones because they can be repeatedly folded without breaking. Companies like Universal Display Corporation (OLED) and LG Display (LPL) are leaders in developing and manufacturing this technology.

How does Samsung's budget foldable phone affect the market?

Samsung's introduction of a more affordable foldable phone is a potential catalyst for wider market adoption. Previously, foldable phones were premium devices costing $1,500+, limiting their appeal to early adopters and tech enthusiasts. A budget-friendly option makes this technology accessible to more consumers, potentially increasing sales volumes significantly. This benefits not just Samsung but the entire supply chain of companies that provide specialized components for these devices.

What is ultra-thin glass (UTG) and why is it important?

Ultra-thin glass (UTG) is a specialized glass that's thin enough to bend without breaking while maintaining the scratch resistance and premium feel of traditional glass. It's a critical component in foldable phones, protecting the flexible display while allowing the device to fold repeatedly. Corning (GLW), known for Gorilla Glass, is a leading manufacturer of this specialized glass. As foldable phones become more popular, demand for UTG is expected to grow substantially.

How do AI processors relate to foldable phones?

AI processors in foldable phones power advanced features like real-time translation, smart photography, and adaptive battery management. These processors need to be especially powerful in foldables to handle their unique dual-screen capabilities and more complex user interfaces. Companies like Qualcomm (QCOM) design specialized chips with AI capabilities for these devices. Samsung's newest foldables emphasize AI features, making these advanced processors even more essential to the user experience.

15 handpicked stocks

Foldable Future

This carefully selected group of stocks represents companies at the forefront of the foldable phone revolution. With Samsung launching new AI-powered foldables including a budget option, these specialized component suppliers are positioned to benefit as this innovative technology goes mainstream.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 11