Apple's first foldable phone, the 'iPhone Duo,' is expected to significantly influence the performance of domestic component suppliers in the second half of the year. With a supply chain that encompasses displays, memory, and optical modules, the sales of the iPhone Duo will directly benefit these suppliers.
On September 9, Apple unveiled the iPhone Duo, a foldable smartphone, at its Apple Park in Cupertino, California. The flexible organic light-emitting diode (OLED) panels that define the foldable phone's identity will be exclusively supplied by Samsung Display. The company will provide both the 7.8-inch internal screen and the 5.5-inch external screen, securing Apple's leadership in the first generation of foldable ecosystems.
Samsung Display has adopted a 'dual UTG' structure, applying ultra-thin glass (UTG) to both the upper and lower panels, significantly improving screen creases. A wrinkle-free prototype showcased at CES 2026 demonstrated a 20% reduction in crease depth compared to the Galaxy Z Fold 7, proving the technology's maturity. Analysts suggest that the durability and production yield accumulated from Samsung's Galaxy Z series since 2019 were decisive factors for Apple's exclusive supply agreement.
LG Innotek will handle the camera module, designed to avoid the hinge area with a unique structure that incorporates a periscope-style 'folded zoom.' This design uses a prism to bend light, achieving high optical zoom and image stabilization despite the device's slim profile. Since the iPhone 15 Pro Max in 2023, LG Innotek's precision optical technology has met the demanding specifications for foldable devices.
The 'brain' and 'memory' of the device will be managed by Samsung Electronics and SK Hynix. The two companies will jointly supply 70% of the 12GB LPDDR5X DRAM needed for on-device AI processing and multitasking. Samsung has reduced heat resistance by 21.2% and improved power consumption by 25% with its industry-thinnest 0.65mm LPDDR5X. SK Hynix holds the record for the largest capacity in a single package with its 24GB LPDDR5X, utilizing the high-k metal gate (HKMG) process. Both companies will also account for about 45% of the total NAND flash supply.
Industry experts agree that Apple's new supply chain structure has once again demonstrated the superior technology of domestic companies compared to their Chinese counterparts. While China's BOE supplies some OLED panels for standard iPhone models, it has not been able to penetrate the premium foldable and flagship segments. Chinese memory firms like CXMT have also failed to enter the supply chain due to gaps in LPDDR5X process miniaturization and unsuccessful negotiations.
Lee Jong-hwan, a professor at Sangmyung University’s Department of System Semiconductor Engineering, stated, "Chinese companies are rapidly improving their technology and increasing their competitiveness in the general parts market, but they are revealing limitations in production stability and quality in cutting-edge areas like high-speed, low-power memory and foldable panels."
As the iPhone Duo garners global attention in the mobile market, it signals a positive outlook for the second-half performance of major domestic component suppliers. Samsung Display is expected to see a more than 15-20% increase in operating profit in its small and medium-sized panel division due to OLED shipments for the iPhone Duo. LG Innotek is also likely to maximize its fourth-quarter performance momentum from supplying high-priced ultra-slim folded zoom camera modules.
A component industry insider noted, "The iPhone Duo is part of a high-end premium lineup, meaning the average selling price (ASP) and profitability are very high. Given the initial yield and quality reliability, we expect a clear growth trend in performance in the second half as production volumes increase."
* This article has been translated by AI.
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