Apple raises inventory for foldable iPhone by 20%, Taiwan Semiconductor and Hon Hai receive more orders

Apple is significantly exceeding its original stocking targets, conveying high confidence in its first foldable iPhone, with its core Taiwanese supply chain partners fully entering the mass production preparation stage.

According to sources cited by Taiwan's Economic Daily, Apple has raised the inventory stocking level of its foldable phone supply chain by about 20% compared to the original target, with Hon Hai, Largan Precision, and Taiwan Semiconductor Manufacturing Company (TSMC) all set to receive more orders. Key components are expected to start shipping from the end of the second quarter to the third quarter of this year, with the official product launch date locked in before the end of the year.

Recent statements from Hon Hai Chairman Liu Yangwei further corroborate this information. Reports indicate that Liu Yangwei stated that a major client has "great confidence" in its upcoming foldable product, which is a leading global company with very high standards. The market generally believes that the client Liu refers to is Apple.

Apple's entry is expected to have a profound uplifting effect on the foldable phone market. According to TrendForce's forecast, as Apple's first foldable device is set to launch in the second half of 2026, the global penetration rate of foldable smartphones is expected to rise from 1.6% in 2025 to over 3% by 2027.

Clear Division of Labor Among Taiwan's Four Major Manufacturers, Led by TSMC and Hon Hai

According to Taiwan's Economic Daily, the supply chain division of labor for the first-generation iPhone Fold has been basically determined, with four Taiwanese companies each taking on specific roles: Hon Hai is responsible for the overall assembly, TSMC for processor production, Largan Precision for high-end camera lenses, and New Kinpo Group for supplying core hinge components.

The report notes that supply chain-related operations have fully commenced, marking the official entry of the product into the mass production preparation stage.

Price Around $2000, Positioned as a High-End Product Line

According to Forbes, citing Bloomberg reports, the foldable iPhone is expected to be priced at around $2000, featuring a 7.8-inch crease-free inner display and incorporating new technologies such as under-display sensors, while rumors suggest that Touch ID will be integrated into the power button to restore fingerprint recognition functionality.

The foldable iPhone is part of Apple's strategy to advance its higher-end "Ultra" product line, which may also include the next-generation AirPods and high-end MacBook Pro with touch screens. This pricing and product positioning indicate that Apple views foldable screen products as a new carrier of brand premium, rather than a mass-market model.

Liquid Metal Hinge as the Core Technological Highlight

Among all components, the hinge is regarded as the most critical structural part of the foldable phone. Reports indicate that Apple has jointly developed high-strength liquid metal hinge technology with relevant suppliers, which features low deformation and high toughness, theoretically significantly enhancing fold durability while maintaining a refined grip feel.

This choice of technological route reflects Apple's consistent high standards for product quality and user experience as it enters the foldable market. Liu Yangwei also emphasized that although its foldable device will hit the market later than those of other manufacturers, "it will definitely launch a mainstream model," and the client's standards are extremely high

Apple's Entry May Reshape the Foldable Screen Market Landscape

According to TrendForce, the global penetration rate of foldable smartphones is only 1.6% in 2025, and the market size remains relatively limited. However, after Apple is expected to launch its first foldable device in the second half of 2026, the penetration rate is expected to exceed 3% in 2027, achieving nearly double growth.

With its large user base and brand influence, Apple has always had the ability to redefine niche markets. The significant increase in inventory targets, coupled with the full activation of the supply chain, indicates that Apple holds a considerable degree of confidence in the commercial prospects of the first-generation foldable iPhone