Domestic Handset Component Makers Stand to Benefit
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
Xiaomi has released its first foldable smartphone, the Mi Mix Fold. The new handset looks similar to SEC’s Galaxy Z Fold series, but is slightly larger. We expect the foldable smartphone market to expand in earnest, benefitting handset component makers.
Xiaomi launches Mi Mix Fold, its first launch foldable smartphone
On Mar 31, Xiaomi released the Mi Mix Fold, its first foldable smartphone. The Mi Mix features a design similar to the Galaxy Z Fold, but is slightly larger than other foldables. It is positive that other major smartphone makers are following in the footsteps of Samsung Electronics (SEC) and launching foldable smartphones, as it should contribute to the growth of the foldable smartphone market, benefitting domestic handset component makers.
The specifications of the Mi Mix are as follows: 1) its display is 6.52 inches when folded and 8.01 inches when unfolded; 2) it features a 3x optical zoom and is the first smartphone equipped with liquid lens technology; 4) it is 7.6mm thick when unfolded and 17.2 mm thick when folded, making it slightly thicker than the Galaxy Z Fold 2; and 5) it weighs 317g (332g for the ceramic model), which is 40~60g heavier than the Galaxy Z Fold 2. While it is positive that the new handset features a wider screen than the Z Fold 2, it is negative that it is thicker and heavier.
The Mi Mix comes with Qualcomm’s Snapdragon 888 and includes 12/18GB of memory and 256/512GB of storage. It will officially launch in China on Apr 16, and there is no information regarding a global release at this stage.
Foldable smartphone market to expand in earnest following global makers’ foldable smartphone launches
Following Xiaomi, we expect Oppo and Google to launch foldable smartphones in the near term. Although it is unclear whether Apple will launch a foldable smartphone, if the firm chooses to do so, it is unlikely to happen before 2023. Nonetheless, we expect the foldable smartphone market to grow in earnest as global smartphone makers follow SEC into the segment.
Likely beneficiaries include KH Vatec (monopolistic supplier of hinges), Fin Technix (metal plate supplier), and Innox AMC (digitizers and heat dispersion materials).