Samsung to set Q4 target for Apple's folding panel production

Samsung Display is aiming to begin producing panels for Apple's first foldable smartphones in the fourth quarter, according to the display industry, as it ramps up manufacturing capabilities of organic light-emitting diode panels.

Samsung Display’s exhibition booth is installed at SID 2025, an international display exhibition, on March 13. [YONHAP]

[NEWS ANALYSIS]

Samsung Display is aiming to begin producing panels for Apple's first foldable smartphones in the fourth quarter, according to a source in the display industry, as it ramps up manufacturing capabilities of organic light-emitting diode panels.

“Samsung Display will begin the production of the panels intended for Apple’s first folding iPhones early in the fourth quarter to meet the launch schedule of the new phone line, which is set for the second half of 2026,” said the source with knowledge of the matter.

The panel maker — of which Samsung Electronics owns 84.8 percent — has been selected as the sole provider of foldable panels for the Cupertino, California-based smartphone giant, according to multiple analysts and tipsters at home and abroad, as reported widely in tech industry news.

The move dovetails with the panel maker’s recent push to convert its existing manufacturing line in Asan, South Chungcheong, into an Apple-dedicated one.

“The conversion is in the final stage,” the source added.

A spokesperson from Samsung Display declined to comment.

Apple’s first foldable — booklet-style, not clamshell — is widely expected to be released in the second half of 2026, fitted with fresh display technology.

“Starting with its foldable smartphone slated for release in the second half of 2026, Apple also plans to integrate other advanced panel features like COE [Color Filter on Encapsulation] technology to its existing nonfoldable iPhones as well as its iPad lineup as early as 2027,” said Chung Won-suk, an analyst at iM Securities. The use of COE is intended to improve brightness and reduce power consumption by replacing the conventional polarizer with a color filter layer. A catalyst for a sluggish market?

Apple’s anticipated entry into the new form factor comes as the foldable smartphone market experiences sluggish growth due to higher prices and persistent durability issues.

Global foldable smartphone shipments in 2024 saw tepid growth of just 2.9 percent on year, according to market consultant Counterpoint, which projected a downbeat outlook for 2025.

“I don’t see many positives this year, and we are actually expecting negative growth for the segment, which will be a first,” said Jene Park, Senior Analyst at Counterpoint.

Still, the analyst expected that a foldable iPhone could make a difference.

A rendered image of Samsung Display's plant in Asan, South Chungcheong [SAMSUNG DISPLAY]

“But it is definitely not a sign of the market peaking; rather, it is a sign of regrouping before 2026, which is expected to be exciting and rejuvenating for the segment with the entry of Apple and a slew of clamshells,” Park said in a note released earlier this year.

Samsung Electronics made its first foray into the form factor in 2019, and the foldable line has been smooth sailing until recently, as China's Huawei appeared with a two-track strategy of releasing both premium and budget lines.

Price-cutting Chinese smartphone makers quickly caught up, with Huawei now claiming the highest market share in the foldable segment.

The Korean tech giant aims to turn the tide by taking an uncharted path with the development of a trifold phone that can be folded twice to allow for an even bigger screen when opened.

Roh Tae-moon, head of Samsung Electronics’ smartphone business, said that the trifold will be released within the year.

Supply chain shift

Apple prefers a multivendor system just as other manufacturers do, but in terms of foldable panels, it will be forced to rely on Samsung Display due to the company's superior technological prowess in the segment for the time being.

“Apple would like to have multiple suppliers, but for now, there is a big disparity in yields and production capacity between Samsung Display and others because Samsung Display has a proven track record as the supplier for Galaxy foldable phones,” the source said.

China’s BOE is producing foldable panels for Huawei, but its quality remains lower than what Apple demands, according to the source.

“Samsung Display could maintain its market dominance through 2026 as it is the sole supplier of Apple’s folding iPhone in the initial stage,” said Han Chang-wook, a researcher at UBI Research, a display-focused market tracker based in Seoul.

LG Display, another major Korean panel maker, is unlikely to enter the new segment.

“Given the limited market size for foldable phones, LG Display doesn’t have a plan to produce any foldable display for either Apple or other manufacturers, “said another source in the local display industry.

As for the current iPhone series, Apple taps Samsung Display, LG Display and BOE, although BOE is excluded from the supply for the Pro line due to an apparent lag in quality.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]