Apple’s Foldable Tech Demanded by Industry: Will It Hurt the Tech Giant?

Why this move? The mobile industry is at a stage of maturity where growth is primarily driven by niche innovations. Samsung, Huawei, and Motorola have already paved the way in foldables, a segment that, although currently accounts for just 1.5% of global smartphone sales, could expand to 30 million units annually in the coming years. For Apple, entering this market is not just a matter of prestige, but also about ensuring it does not fall behind its Asian competitors.

However, the challenge is significant. Experts from firms like Counterpoint Research and IDC agree that the supply chain will be the real hurdle.

“Manufacturing a foldable requires much more expensive materials, such as high-quality flexible OLED screens and ultra-durable hinges, and necessitates altering entire assembly processes,” explained Ramón Llamas, research director at IDC for devices.

Moreover, relying heavily on China, Apple faces the additional risk of potential tariffs the United States might impose on technology products assembled there. If tariffs of 20% to 30% were implemented, the final price of a foldable could rise by $300 to $500 per unit, impacting not only consumers but also Apple’s margins, which are typically above 35%, according to data from Counterpoint.

In this context, Cupertino would opt for a cautious strategy and reserve redesigns and experimentation for premium models like the foldable iPhone, while maintaining traditional lines such as the base iPhone with evolutionary changes, according to Llamas.

According to Canalys, this decision allows for containing financial risks and adapting its supply chain gradually, rather than completely redesigning the main range.

On the other hand, estimates from TechInsights show that the cost of the foldable screen alone in devices like the Galaxy Z Fold can exceed $150 per unit, compared to about $60 to $80 for a traditional high-end screen. Hinges, designed to withstand more than 200,000 folds without failure, can add another $60 to $100 to the material costs.

To manage these expenses, brands like Samsung and Huawei have opted to produce in relatively low volumes, positioning their foldables as premium products with prices ranging from $1,800 to $2,500.