Investment Rating - The report rates the electronic/consumer electronics industry as "Outperform" [1] Core Insights - The iPhone's entry into the foldable screen market is expected to reshape its high-end market positioning, with a projected release in 2026 [10][6] - The report highlights the competitive pressure faced by iPhone in China from domestic brands like Huawei and Xiaomi, particularly in the foldable screen segment [2][6] - The foldable screen market is anticipated to grow significantly, with global shipments expected to rise from 15.3 million units in 2023 to 31.4 million units by 2027, reflecting a compound annual growth rate (CAGR) of 43.7% [19][20] Summary by Sections 1. iPhone Market Dynamics - iPhone's market share in China has declined from 19.9% in Q1 2023 to 15.0% in Q2 2025, facing competition from local brands [2][6] - The high-end market is identified as a critical area for iPhone to regain market share, with Pro models gaining popularity [6][10] 2. Foldable Screen Development - Foldable screens are seen as a key innovation in the smartphone sector, balancing large screen experiences with portability [11][10] - The report outlines the cost increments associated with foldable screens, particularly in display modules, mechanical components, and memory, with increases of approximately 194%, 177%, and 38.6% respectively [2][27] 3. Market Projections for Foldable iPhone - The report estimates that if Apple launches a foldable iPhone in 2026, potential sales could reach 14 million units under optimistic scenarios [42][38] - The analysis indicates that higher-priced brands tend to have a greater proportion of foldable screen sales, suggesting iPhone's potential to exceed a 6.44% sales share in this segment [42][38] 4. Key Components in Foldable Phones - The main components driving foldable phone innovation include flexible display modules, hinges, and memory [31][35] - The report identifies key suppliers for these components, including major players in the flexible OLED panel market and memory sectors [31][35] 5. Market Trends for UTG and Hinges - The global market for ultra-thin glass (UTG) is projected to grow significantly, with shipments expected to reach 24.6 million units in 2024, reflecting a 36.9% year-on-year increase [48][51] - The hinge market for foldable screens is also expected to expand, with a projected market size of $3.2 billion in 2024, growing to $15.4 billion by 2032 [57][60]