Apple Prepares iPhone Fold Launch in 2026, Targeting 4% Lower BOM Cost

Apple is preparing to launch its first foldable iPhone, with the supply chain reportedly finalizing specifications for a book-style “iPhone Fold” slated for release in the second half of 2026. This move signifies Apple’s entry into the foldable smartphone segment, which, while currently niche, is expected to undergo significant transformation with the involvement of the world’s most influential smartphone brand.

According to a teardown analysis of Samsung’s Z Fold SE, Apple’s iPhone Fold could achieve a Bill of Materials (BOM) cost of $759, approximately 4% lower than Samsung’s device. This cost efficiency is attributed to savings on memory, application processors, and camera modules, despite the use of premium materials for the casing and hinge. Initial production estimates range from 10 million to 15 million units, reflecting the technical complexity and high price point of foldable devices. Early reports suggest the iPhone Fold could be priced between $2,000 and $2,400, making it Apple’s most expensive phone to date. However, analysts predict that Apple’s cost discipline may allow it to price the device at the lower end of the anticipated range, between $1,800 and $2,000, with contribution margins of 53% to 58%, comparable to Samsung’s foldables and well above the iPhone 16 series.

The launch of the iPhone Fold is expected to have a positive impact on Apple’s supply chain, including companies like Amphenol, Hirose, TDK, Avary, and SDI. The unique design of the iPhone Fold is set to benefit several key players. Samsung Display is expected to be the primary supplier of display panels, with the capacity to produce up to 15 million 7-inch foldable OLED panels annually. LG Display may also play a role as Apple diversifies its sources. The device will likely feature a titanium casing and a liquid metal hinge, with suppliers such as Lens Technology, Amphenol, and Hon Hai (Foxconn) positioned to benefit from higher bill-of-materials (BOM) wallet share. Hon Hai is expected to handle initial assembly, with Luxshare as a secondary partner, reflecting Apple’s strategy of leveraging its established manufacturing ecosystem.

Apple’s entry into the foldable market is likely to accelerate the adoption of foldable devices, not just in smartphones but also in tablets and notebooks over the medium to long term. The company’s late-mover advantage, leveraging a mature supply chain and refined technology, could help it manage costs and deliver a more polished product, potentially expanding the market beyond its current niche. The global foldable smartphone market has shown signs of fatigue, with growth slowing and even a projected decline in 2025. High prices and lingering concerns about durability and usability continue to limit mainstream appeal. However, Apple’s brand power and ecosystem integration could be the catalyst needed to reignite interest and drive broader adoption.

Samsung remains the global leader in this segment, with the most comprehensive foldable lineup and ongoing innovation in form factors. Oppo, OnePlus, Google, Motorola, Honor, and Vivo are strong competitors, each offering unique takes on foldable design and features. Tecno and other Chinese brands, as well as Samsung, are pushing the envelope with tri-fold and ultra-thin concepts. More brands are introducing “Fan Edition” and entry-level foldables to broaden market access. Apple’s anticipated entry in 2026 is expected to further accelerate mainstream adoption and innovation.