Samsung Group’s display-making unit Samsung Display Co. will supply its organic light-emitting diode (OLED) displays for Apple Inc.’s first foldable iPhone, which is expected to hit the market in 2026.

According to sources from the mobile industry on Thursday, the South Korean company will supply its latest OLED panels for Apple’s first foldable iPhone.

Samsung Display currently leads the small and mid-sized OLED panel market with a market share of over 40 percent and was the first in the world to pioneer the foldable OLED market by supplying panels to Samsung Electronics Co.

“Only three companies - Samsung Display, LG Display Co., and China’s BOE Technology Group Co. - supply small and mid-sized OLED displays to Apple, and it is only natural that Samsung Display, which is the most advanced in foldable OLED panel manufacturing technology, was selected as a partner,” an industry insider said.

Foldable OLED panels must be highly durable, thinner, and more energy-efficient than regular smartphone displays to offset the disadvantages of foldable phones, which tend to be thicker and have smaller batteries.

The long-rumored speculation about Apple’s entry into the foldable phone market gained traction when Ming-Chi Kuo, an analyst at Taiwan’s TF International Securities known for his accurate Apple forecasts, wrote on X (formerly Twitter) on Thursday that “Apple’s iPhone assembler Foxconn is expected to start work on the foldable iPhone project in the latter half of the third quarter or early fourth quarter.”

“Samsung Display plans to build an annual production capacity of 7 million to 8 million foldable panels for the 2026 foldable iPhone,” he added.

Apple has been working with Samsung Display to address a key drawback of current Android foldables – namely, the visible crease down the middle of the display, sources said.

The foldable iPhone is expected to be priced in a higher premium tier than existing iPhones.

Industry insiders believe that Apple’s decision to launch a foldable model reflects a new strategy aimed at attracting new customers and encouraging existing users to upgrade to higher-priced models as iPhone sales stagnate after peaking in 2022.

Apple’s first foldable iPhone could also serve as a catalyst to re-engage Apple enthusiasts seeking technically advanced and differentiated smartphones and is also expected to help expand the overall foldable market.

According to market research firm TrendForce, foldable phones accounted for just 1.5 percent of total smartphone shipments in 2024.

Fellow research firm Counterpoint Research noted that although the foldable smartphone market grew by about 3 percent in 2024 compared to the previous year, sales could decline in 2025, indicating that the market is stagnant.

Some in the industry expect that the release of a foldable iPhone will drive up consumer demand across the segment, which in turn will lead to lower component prices and increased sales of foldable phones. This could benefit panel suppliers such as Samsung Display and LG Display, both of whom supply small OLED panels to Apple.

However, foldable phones remain more expensive than regular smartphones, creating a high barrier to entry for consumers. This is because they require more durable components to support the folding mechanism, contributing to higher production costs.

“Apple likely hesitated to enter the foldable market for years due to questions about profitability,” an industry insider said. “Unless the device offers an additional ‘wow factor,’ it is uncertain whether it will generate profits in line with expectations.”

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