A foldable iPhone could provide a significant boost to Apple's growth and market valuation, according to a senior technology analyst.
The suggestion comes as investors weigh Apple's ability to innovate in a maturing smartphone market. A shift toward foldable hardware would allow the company to capture new demand and expand its existing product portfolio.
Timm Schulze-Melander, head of technology hardware and semiconductor research at Rothschild & Co. Redburn, discussed the potential move during an appearance on CNBC's "The Exchange" on Monday [1]. He said that a foldable iPhone would be a "match made in heaven for Apple" [2].
Schulze-Melander said that the market has not yet fully priced in the possibility of such a device. He said investors should scoop up Apple shares because the potential for a foldable phone is not fully appreciated [1].
While Apple has not officially announced a foldable device, the analyst said the move would align with the company's history of refining existing technologies for mass appeal. By entering the foldable space, Apple could target premium users seeking larger screens without the bulk of a traditional tablet, a move that could drive a new upgrade cycle for the iPhone.
The analyst said that the company can get a big boost from a foldable iPhone [2]. This growth would likely stem from both increased average selling prices and the attraction of customers currently using foldable devices from other manufacturers [1].
“"It’s a match made in heaven for Apple."”
The analysis suggests that Apple's perceived stagnation in hardware design may be a market miscalculation. If Apple successfully launches a foldable device, it would not only diversify its revenue streams but also challenge the dominance of existing foldable leaders in the global market, potentially shifting the valuation of the company's hardware division.
