Zhitong Financial APP learned that data released by IDC show that in the fourth quarter of 2022, China's single-quarter shipments of folding screen products hit another record high, shipping more than 1.1 million units. Shipments for the whole year were nearly 3.3 million units, an increase of 118% over the same period last year, and the growth rate was higher than expected. Folding screen products account for 1.2% of the domestic smartphone market, up from 0.5% in 2021. Guoxin Securities pointed out that the consumer electronics industry has experienced continuous terminal destocking in the past year, the downstream inventory is now at a low level, and the industry has entered a weak recovery cycle. Global smartphone shipments are expected to achieve restorative growth in 23 years after 22 years of overfall.
In 2022, the consumer electronics industry chain represented by mobile phones will not be easy. Consumer chips, panels, mobile phone laptop parts and other links without exception have been hit hard. Although there are still concerns about the overall trend of consumer electronics, Ethan, an analyst at Counterpoint, said that some segments with a low base, such as folding machines and VR, are likely to see significant growth in 2023.
In 2023, the market has high expectations for folding machines. According to iResearch's Insight report on China's folding screen mobile phone market, shipments of folding screen phones are expected to reach 4.5 million in 2023, a growth rate of 69.5%. In addition to folding machines, smart wearable products such as VR are also highly expected in 2023, and the growth of a number of segments is expected to accelerate the penetration of AMOLED screens.
In fact, folding screen phones are rapidly dominating the ultra-high-end market. According to a research report released by Counterpoint, the global folding screen mobile phone market is expected to grow 52% year on year to 22.7 million units in 2023. Chen Jun, chief analyst at Group Intelligence Consulting, believes that with the further decline in the price of folding screen phones, sales will reach 30 million in 2023.
Based on the dip of screen, weight and price, the threshold of folding screen is greatly reduced. The cost of consumers using folding screen mobile phones is lower than in the past, and the audience of the folding screen mobile phone market is also expanding. This also has no small benefits for mobile phone manufacturers, which can form a virtuous circle and promote the further development of folding screen mobile phones.
In this context, the major smartphone manufacturers have launched folding screen phones at the speed of one or two models a year, and several major head manufacturers continue to optimize the new experience of folding screen by virtue of their own advantages. According to market news, Apple Inc also plans to launch a folding screen mobile phone in the second half of 2023.
It is understood that Microsoft Corp's next folding screen phone Surface will not be a dual-screen phone. After a year of hardware prototype design and experiments, Microsoft Corp decided to switch to a more traditional folding screen mobile phone design. In addition, Samsung will use teardrop design in the next generation of folding screens, so that the folding screen can be fully folded, while this technology also overcomes the wear and durability of folding.
Debon Securities believes that in terms of terminal purchasing power, 11% of H1 phones sell for more than $800 worldwide in 2021, while the current folding screen penetration rate is less than 1%, and is optimistic about the trend of accelerated penetration of folding screen phones. With the accelerated development of the folding screen industry, the parts supply links with close terminal cooperation and good clamping position in the industrial chain will be the first to benefit. It is suggested that attention should be paid to the incremental links of the folding screen supply chain: 1) flexible display panels: Beijing Oriental A, TCL Technology, Visino, etc.; 2) Protection cover plates: Changxin Technology, Kaisheng Technology, etc.; 3) hinges: intensive Research Technology, Changying Precision, Corson Technology, etc.
Related concept stocks:
Furong Technology (603327.SH): the company provides aluminum structural materials for Huawei's smartphones and supplies folding screen phones in bulk.
Intensive Research Technology (300709.SZ): Jingyan is one of the few enterprises in the field of folding screen mobile phones that have the ability to supply core components and components of MIM at the same time. The products have been finally applied to domestic and foreign well-known consumer electronics brands such as Apple Inc (Apple), Samsung (SAMSUNG), vivo (vivo), OPPO, fitbit, XIAOMI, Alphabet Inc-CL C (Google) and so on.
Beijing Oriental A (000725.SZ): domestic OLED panel leader, the company's products are positioned as AMOLED high-end mobile phone display and emerging mobile display products, including mobile phones, cars and foldable notebooks and other flexible display products.
Crystal Optoelectronics (002273.SZ): in response to a question on the interactive platform about whether the company is involved in Huawei's folding screen phone supply chain, the company said its products are used in Huawei folding screen phones.
Changying Precision (300115.SZ): products include intelligent terminal metal and non-metal structure modules, folding screen shafts and so on. Our customers include oppo, vivo, Huawei, Samsung, XIAOMI, MOTO and other domestic and international well-known mobile phone brands.