A definitive growth cycle is underway.
On October 28, 2025, Apple's total market capitalization surpassed the $4 trillion mark for the first time, making it one of only three publicly traded companies globally to achieve this milestone. Behind this landmark event, in addition to optimistic market expectations regarding its AI strategy, the technological iteration path of its core product, the iPhone, holds crucial clues to potential supply chain transformations.
According to analyst Jeff Pu, Apple is developing its first foldable smartphone, the iPhone 18 Fold, expected to be released by the end of 2026. It will feature a hybrid metal frame made of titanium and aluminum, and Apple may also apply this new material to both the iPhone Fold and iPhone Air models. Previously, renowned analyst Ming-Chi Kuo also indicated that Apple would introduce titanium alloys in the next-generation iPhone.
As a key link in Apple’s titanium alloy supply chain, Tiangong International has established a deep competitive moat through its technological barriers, customer stickiness, and production capacity reserves. For Tiangong International, which has extensively laid out its titanium alloy industrial chain, a definitive growth cycle is now commencing.
01
Technological Breakthroughs and Experience Redesign:
The Underlying Logic of Apple's Adoption of Titanium Alloys
Apple's renewed embrace of titanium alloys is not coincidental but rather an inevitable result driven by advancements in material technology, upgrades in product experience, and competitive market strategies. From the initial adoption of titanium alloys in the iPhone 15 Pro and Pro Max, to a brief hiatus, and now their return in the iPhone 18 series, material selection has consistently followed the core logic of prioritizing user experience. Improvements in technological maturity and cost control capabilities have removed obstacles to large-scale application.
As a strategic-level product in Apple’s portfolio, foldable screens impose unprecedented stringent requirements on materials. Repeated stress impacts on the hinge area, along with challenges in balancing the device's overall weight and durability, remain critical bottlenecks hindering the widespread adoption of foldable screens.
The 'titanium-aluminum hybrid' solution adopted in the iPhone 18 Fold represents a targeted approach—using titanium alloys in hinge load-bearing areas to reinforce strength while employing aluminum alloys in non-critical areas to reduce weight. Through precise structural division of labor, this design overcomes the binary dilemma of either being 'heavy and durable or light and fragile.'
The material properties of titanium alloy perfectly match the requirements of foldable screens: its strength is nearly twice that of aluminum alloy, yet it is 40% lighter than stainless steel, precisely meeting the material needs for the hinge area of foldable screens. Material optimization is expected to keep the total weight of the iPhone 18 Fold under 250 grams, close to the handling experience of flagship straight-edged models, completely resolving the longstanding issue of 'heaviness' associated with traditional foldable screens. For Apple's foldable screen, which markets itself on offering a 'revolutionary experience,' titanium alloy has become an irreplaceable core material.
Moreover, in an increasingly homogenized smartphone market environment, material innovation has become a key differentiator for brands seeking to build competitive advantages. The multi-faceted experience upgrades achieved through the use of titanium alloy in the iPhone 18 series are establishing a formidable competitive barrier that is difficult to replicate.
After being treated with a sandblasting process, the titanium alloy frame provides a finer damping tactile sensation: warmer and less harsh than stainless steel, while offering stronger scratch resistance compared to pure aluminum, fundamentally addressing common issues such as fingerprint residue and surface scratches during daily use.
Furthermore, the micro-deformation space reserved in the load-bearing areas of the titanium alloy, combined with the elastic cushioning provided by aluminum alloy sections, improves the overall drop resistance of the device by 40% compared to a full-titanium structure, effectively addressing the inherent drawback of poor shock absorption in titanium metal. These perceptible experience upgrades are a crucial factor enabling Apple to stand out amidst the homogenized competition in AI functionalities.
As a foldable screen smartphone, the surface area and volume of the iPhone 18 Fold will inevitably be much larger than those of the iPhone 15 Pro Max. However, achieving a similar weight requires the use of titanium alloy in multiple components such as the middle frame, screen substrate, and hinge cover. The amount of titanium alloy used per unit will significantly exceed that of the iPhone 15 Pro Max, considering the latter's titanium content. Previously, Southwest Securities projected that Apple would use 7,127.1 tons of titanium alloy in 2026; however, this figure only accounted for the demand of non-foldable models, indicating that Apple’s annual titanium alloy requirement will likely exceed 7,000 tons.
02
Demonstration Effect and Production Resonance:
Explosive Opportunities in the Titanium Alloy Market
As a trendsetter in the consumer electronics industry, Apple’s comprehensive adoption of titanium alloy will generate a strong demonstration effect, propelling the entire industry into a 'titanium alloy upgrade cycle.' From market size forecasts to supply chain benefits, Tiangong International, as Apple’s core titanium supplier, is at the forefront of this materials revolution. Its technological barriers, production capacity layout, and customer-binding advantages will fully unlock value.
Apple's material choices have historically played a leading role in the industry, and its scaled application of titanium alloy will rapidly activate the titanium materials market for consumer electronics. Currently, numerous consumer electronics manufacturers such as Huawei, Samsung, and Honor are incorporating titanium alloy into their products, which helps drive the comprehensive penetration of titanium in the consumer electronics sector.
Zhu Xiaokun, Chairman of the Board of Tiangong International and Director of Tiangong Shares, stated that with continuous penetration in recent years, the application of titanium alloys in the mobile phone industry will achieve comprehensive adoption by 2030 at the latest. The demand for titanium alloy materials in the mobile phone market is expected to experience sustained growth.
According to a research report by GF Securities, referencing the past penetration rate of stainless steel models, the global market size for titanium alloy mid-frames in mobile phones is projected to reach RMB 43.2 billion by 2027, while the global market size for folding screen phone hinges is expected to reach RMB 33.3 billion.
From a longer-term perspective, the extended applications of titanium alloys in AR/VR headsets, drones, and other hardware devices requiring lightweight and high structural strength will create a multi-category driven market growth trajectory.
Amidst the surging wave of the titanium alloy market, Tiangong International has become the most definitive beneficiary due to its deep technological expertise, solid supply chain position, and forward-looking capacity planning. As one of the core enterprises involved in titanium alloy supply, the company has established a complete competitive advantage encompassing 'technological barriers – customer binding – capacity reserves.'
Technologically, the performance of Tiangong International's titanium alloy products has reached an internationally leading level. Its developed titanium alloy wire boasts a tensile strength exceeding 1200MPa, maintains an elongation rate above 15%, and offers a 30% increase in strength compared to traditional titanium materials, meeting the fatigue resistance requirements for folding screen hinges, surpassing international counterparts in technical specifications.
The company possesses core technologies such as purification melting technology for titanium and titanium alloys, production technology for large-scale titanium and titanium alloy wires, and pure titanium rolling instead of forging technology. These innovations enhance the material’s fatigue life and enable single-coil wire weights to exceed 250 kilograms, significantly improving downstream customers' processing efficiency. More crucially, the company utilizes electron beam cold hearth furnace processes to recycle scrap materials, amplifying cost advantages and laying the groundwork for handling large-scale orders.
In terms of customer binding, Tiangong International has entered the supply chain systems of several well-known consumer electronics brands and participates in the supply of related titanium alloy materials. This cooperative relationship is built upon stringent supply chain certification within the consumer electronics industry, where Tiangong International demonstrates leading product capabilities.
Long-term service to industry giants has enabled Tiangong International to accumulate extensive R&D and production experience, positioning it to be included in the preferred supplier lists of numerous manufacturers ahead of the impending titanium alloy surge.
In fact, the titanium industry has maintained relatively rapid growth in recent years. According to data from the China Nonferrous Metals Industry Association, from 2020 to 2024, domestic titanium processed material production increased from 97,000 tons to 172,000 tons, with a compound annual growth rate (CAGR) of 15.39%. Titanium processed material sales grew from 94,000 tons to 151,000 tons, with a CAGR of 12.70%. As titanium materials continue to penetrate the manufacturing sector, demand is expected to accelerate further.
To this end, Tiangong International has proactively planned its capacity expansion. To meet growing market demand, the company has added 3,000 tons of high-end capacity through fundraising projects. Upon reaching full production, annual capacity will exceed 10,000 tons, further solidifying its leading market position.
Of greater strategic significance is that in August 2025, Tiangong Co., Ltd., a subsidiary of the company, jointly established Tiangong Titanium Crystal with its partners. By acquiring the plasma atomization production line and related assets of Pindao New Materials, the company continues to enhance product performance, creating a high-quality example of an integrated titanium alloy powder production line in China. This lays the foundation for expanding market opportunities in consumer electronics as well as in medical devices, aerospace, and other fields.
This year, the company successfully delivered its first order of titanium alloy wire for aviation-grade fasteners, which signifies broader recognition and breakthroughs in product quality, opening up new long-term growth potential for the company.
From a financial perspective, Tiangong International has demonstrated robust profitability. In the first half of 2025, the company reported net profit attributable to shareholders of RMB 204 million, representing a year-on-year increase of 10.4%, maintaining resilience amidst industry fluctuations. With the release of titanium alloy orders for the iPhone 18 series and the mass production of folding screen products, the company’s consumer electronics titanium materials business revenue is expected to enter an accelerated growth phase, becoming a core driver of earnings growth.
03
Conclusion
Behind Apple's $4 trillion market capitalization lies its relentless pursuit of core technology and user experience, with the comprehensive application of titanium alloys serving as a tangible manifestation of this commitment. From breakthroughs in processing techniques to upgrades in product experience, Apple is redefining material standards for consumer electronics, sparking a materials revolution that will create new market opportunities.
As the titanium alloy frame of the iPhone 18 series becomes a market focus, this leading company deeply rooted in the titanium alloy sector is entering a dual window of opportunity for both performance and valuation reassessment. Amid the definitive trend of material upgrades in consumer electronics, Tiangong International’s growth story is just beginning to unfold.
