Apple Inc. (AAPL.US) signs rare three-year exclusive agreement! Samsung shows dominance in supplying foldable screen panels for iPhones.

According to reports, Apple Inc. (AAPL.US) has agreed to a three-year exclusive supply agreement with Samsung Display to provide foldable OLED panels for its planned foldable screen iPhone. Other suppliers are currently unable to meet its requirements, and Apple Inc. typically prefers to work with multiple suppliers to reduce costs and maintain flexibility. Samsung Display plans to start mass-producing foldable OLED panels for Apple Inc. in the second quarter. Sources familiar with the matter stated that this exclusive arrangement was proposed by Samsung due to competition between Apple Inc. and Samsung's own smartphone business. Therefore, Samsung Display needed a "valid reason" to provide key components to Apple Inc. The report mentioned that this exclusive agreement may prevent Apple Inc. from purchasing such displays from other suppliers until around 2029 or 2030, although competitors' technological capabilities may improve over time. Meanwhile, Apple Inc. seems to have learned from the expensive lesson of the cold reception of the Vision Pro, and has adopted a cautious production strategy for this potential device priced at over $2000. The initial shipment volume for this year is estimated to be only around 3 million units, much lower than the market's previous expectation of 8-10 million units. The potential pricing also suggests that this will be a device targeted more towards high-end, early adopters, rather than a mass-market product. An industry insider stated that the lower shipment volume reflects a strategy of assessing market response before adjusting supply. For the smartphone market, foldable screens are still considered a niche demand. Statistics show that the shipment volume of this high-end smartphone category was around 20 million units last year, accounting for less than 2% of the overall market share. Earlier reports stated that Apple Inc. faced difficulties during the engineering testing phase of its foldable screen iPhone, which could lead to delays in production and shipment schedules. This raised concerns about the potential delay of the product. However, well-known Apple Inc. leaker Mark Gurman stated that Apple Inc.'s first foldable screen phone is still expected to be released later this year according to the usual release cycle. Gurman cited sources familiar with the matter, saying that Apple Inc. still plans to release this foldable model in September this year, alongside the iPhone 18 Pro series. The sources mentioned that although the complexity of the new display screen and materials may initially cause supply restrictions for foldable models in the first few weeks, the company still plans to launch this device for sale around the same time as other non-foldable new phones. However, Gurman cautioned that since the potential release date is still about six months away and production has not yet fully started, the final schedule has not been completely finalized. Gurman pointed out that this device is one of Apple Inc.'s important strategic projects, as the company is trying to expand the iPhone product line by introducing new designs, higher priced models, and enhanced features to compete with rivals like Samsung. The foldable screen iPhone will be similar in form to competitors, but will have some key selling points. Apple Inc. engineers believe they have addressed long-standing screen quality and durability issues with foldable devices, including reducing visible folds. When unfolded, the device will have a wider horizontal aspect ratio, making it better for video and gaming experiences compared to the currently available narrow foldable smartphones in the market. Additionally, Apple Inc. plans to optimize the iOS system to make apps display more like the software experience on an iPad on this device. In terms of price, this product is expected to exceed $2000 (about 13,714 RMB). While the high price may deter some consumer demand, it is expected to increase Apple Inc.'s overall average selling price and drive revenue growth. For Apple Inc., the foldable screen iPhone is the second step in its three-year plan to "reshape flagship product form". Last year, the company already launched redesigned Pro and Pro Max models, as well as the thinner iPhone Air. Furthermore, Apple Inc. is also developing another new iPhone, planned for release in 2027 to commemorate the product's twentieth anniversary. Gurman also mentioned that Apple Inc. is adjusting the annual release schedule for the iPhone, with the next generation entry-level model being postponed until spring 2027, at which time a new generation iPhone Air and a lower-priced version iPhone 18e will be launched.