Jinwu Financial News | Goldman Sachs' latest research report "China Smart Phones: Surge in Foldable Phone Patents, New Forms and Component Upgrades Lead Growth" points out that the institutions have reviewed the patents and new model pipeline for foldable phones and hold an optimistic view on the future market penetration rate of foldable phones. The report emphasizes a significant increase in the number of patents submitted in 2024, reflecting the following trends: 1) The development of new forms, transitioning from clamshell and horizontal foldable phones to tri-fold and quad-fold phones, which are expected to enhance the value of the supply chain; 2) Component upgrades: more durable panels and newly designed hinges, particularly for tri-fold phones, are driving the upgrade of industry standards; 3) More brands are joining the foldable phone trend and are researching foldable phone patents, which helps improve the market penetration of foldable phones and may lead to more affordable prices. The report specifically mentions Huawei's launch of a tri-fold phone and gives "buy" ratings to AAC (acoustics, lenses, hinges), SzS (hinges), Fostek (hinges), Hon Hai/Luxshare (iPhone assembly), and Largan (lenses).
The report provides a detailed analysis of the public patent situation of major brands. Since 2010, smart phone brands have actively applied for patents, and compared to 2023, the number of foldable phone patents in November 2024 has increased, which will support the launch of new foldable phone models, benefiting the entire foldable phone supply chain. Among the patents published by the China National Intellectual Property Administration, Huawei leads with 355 patents, followed by Honor, Samsung, Vivo, Xiaomi (01810), Apple (AAPL), and OPPO, with 268, 249, 171, 110, 58, and 27 patents respectively. The report summarizes the key focuses of recent foldable phone patents: new forms of tri-fold/quad-fold phones, durable panels, and hinge upgrades. It is expected that these new forms will enhance user acceptance and benefit foldable phone suppliers.
Goldman Sachs' analysis of the industry and future outlook shows that the global smart phone market is expected to grow by 4% and 3% in 2024 and 2025 respectively.
The report also forecasts the foldable smart phone model pipeline for major suppliers from 2023 to 2025. Goldman Sachs believes that with more brands joining the foldable phone trend, and as technology advances and costs decrease, the foldable phone market will continue to grow, particularly in new forms and component upgrades. Investors are advised to pay attention to key component manufacturers in the foldable phone supply chain, as well as those brands leading in new forms and technological innovations.
