Following Samsung Electronics (OTC: SSNLF), Huawei has launched foldable smartphones, Xiaomi (OTCPK: XIACF) and Motorola (Lenovo (OTCPK: LNVGY) they also released videos of the upcoming new foldable smartphone.This provides new impetus for the smartphone market where demand saturation leads to longer replacement cycles.Led by Samsung and Chinese names, border-Fewer displays and camera holes on the front display are becoming mainstream, with borders-Fewer smartphones with in-The display fingerprint scanner means a number of hardware innovations are taking place in the smartphone space.
With the start of the 5g service, the smartphone subsidy for telecom companies may increase further.Even if the smartphone market experienced negative growth in 2019, the conditions for the market to return to the growth track in 2020 have matured.Samsung's Galaxy Fold is the undisputed leader in foldable smartphones.
Its hinges, developed by a South Korean parts supplier, are capable of folding at least 200,000 times, which is technically far from Chinese competitors.Samsung’s in-Folding the smartphone follows the hinge mechanism with a small gap at the hinge end, but this is not enough to get in the way of the user experience.We believe that future technological innovations will enable companies to introduce thinner displays and hinges.
The Hinge of Samsung Galaxy Fold is the climax of the efforts of metal products, including metal injection molding, MoldCasting, pressure.Therefore, the entry threshold for this technology is very high.The out-The folding smartphones released by Chinese players have simpler hinge mechanisms, although they are better than in-Folding smartphones are more vulnerable to external shocks and are not durable due to the exposure of the display's appearance.
The in-Folding technology is very important because it allows the smartphone to fold more than two times, making it easier to expand the display size.At the same time, Samsung only-Fold the smartphone but some of its new models in 2020 may be out of dateFolding smartphoneSamsung aims to sell Galaxy Fold for 1mn this year, while Huawei aims to sell 500 K.It's not sure when Apple will release a foldable smartphone.
Foldable Smartphone, shape change, 5g to stimulate replacement demand, in-Folding and foldingThe folding smartphone is made of a colorless pi film (CPI.Go ahead, go outUltra-folding smartphoneIt is considered a thin glass (UTG) developed by short and Corning (GLW ).In contrast, UTG has higher hardness.CPI, so it's more scratch resistant but can't be used-Fold the smartphone because it has a bad curve.
Meanwhile, the Galaxy S10 is now a border-Less, there's-facing hole-punch camera.Looking ahead, we expect smartphone manufacturers to also work to eliminate camera holes.Xiaomi uses pop music.Up camera design for Mi mix3.In the future, we believe we will try to develop a popular music.
Based on the up design of the hinge mechanism, the smartphone will be fully framedless.We believe that 5g service and hardware innovations (e.g., 1) foldable smartphones) will shorten the smartphone replacement cycle;2) bezel-less full-Smartphone screenand 3) bezel-Fewer smartphones with in-Display fingerprint sensor.
We continue to look positively at Samsung as it is leading technological innovation.We also believe that material and parts suppliers such as SKC Kolon PI, Innox advanced materials and KH Vatec will benefit for a long time.Disclosure: I/we have no positions in any of the stocks mentioned and no plans to start any positions in the next 72 hours.
This article was written by myself and expressed my views.I have not received compensation (except for Seeking Alpha ).I have no business relationship with any stock company mentioned in this article.
Supplementary disclosure: Hyundai Motor is a passive shareholder of our bank