Foldable Smartphone Market to Expand Rapidly
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
Global foldable smartphone shipments are set to expand in earnest from 1H21. In particular, we expect SEC to focus on foldable smartphones while discontinuing the Galaxy Note series. Considering the growth momentum of the foldable smartphone market, we recommend taking a closer look at related stocks.
Foldable smartphone market to expand in earnest
Global smartphone makers are set to launch foldable smartphones in earnest from 1H21. In particular, we expect Samsung Electronics (SEC) to focus on foldable smartphones while discontinuing the Galaxy Note series. We spotlight KH Vatec, Fine Technix, and Innox AMC as potential beneficiaries.
Global foldable smartphone shipments reached 3mn units in 2020, which was lower than expected due to both a slowdown in demand caused by Covid-19 and high prices that made customers reluctant to buy.
However, we predict that foldable smartphone shipments will jump to 8.7mn units in 2021, beating market expectations, led by: 1) the fading impact of Covid-19; 2) the likely discontinuation of the Galaxy note series; and 3) declining prices as SEC new foldable series will likely start from around W1mn.
Foldable smartphone market to expand rapidly on increased participation by global companies
Not only SEC, but also other global smartphone manufacturers such as Xiaomi, Oppo, and Google are expected to release foldable smartphones in 2H21. We believe that Android smartphone makers will launch foldable smartphones in earnest from 2022, while Apple is due to enter the market in 2023. Overall, the foldable smartphone market should display rapid growth going forward.
We present KH Vatech, the exclusive supplier of hinges to SEC, Fine Technix, which supplies metal plates, and Innox Advanced Materials, which supplies digitizers and heat dissipation materials, as recommended plays.