The Huawei MateXT Masterpiece Ignites the Tri-Fold Smartphone Market, Domestic Supply Chain Rises to the Fore!

The Huawei MateXT Masterpiece Ignites the Tri-Fold Smartphone Market, Domestic Supply Chain Rises to the Fore!Once upon a time, early September was Apple's exclusive time slot. However, this year, the spotlight shines on Huawei

The Huawei MateXT Masterpiece Ignites the Tri-Fold Smartphone Market, Domestic Supply Chain Rises to the Fore!

Once upon a time, early September was Apple's exclusive time slot. However, this year, the spotlight shines on Huawei. On September 10, 2024, Huawei held its "Huawei Extraordinary" brand gala and HarmonyOS Smart Travel new product launch conference, officially releasing the world's first tri-fold smartphone - the Huawei MateXT Masterpiece. This product, with its sci-fi attributes, quickly became the focus. As of September 12th, pre-orders on Huawei's official website have reached nearly 6 million. Rumors suggest that second-hand sellers are even pushing the price of the Huawei MateXT Masterpiece to a staggering 380,000 yuan, making one wonder, when will other tri-fold phone products appear on the market?

PChome, after combing through supply chain information, has discovered that upstream suppliers currently possess mature tri-fold solutions. Whether other smartphone manufacturers will follow suit depends on their willingness to invest heavily in research and development alongside these suppliers. The emergence of tri-fold phones also signifies the strong rise of the domestic supply chain.

As early as 2019, foldable phones started to emerge. However, at that time, Chinese smartphone manufacturers and the industry chain did not hold a dominant position in this field. Taking the Galaxy Fold released by Samsung in February 2019 as an example, its key components, such as the hinge, OCA adhesive, panel, and polarizer film, were almost entirely sourced from Japanese and Korean manufacturers. The Galaxy Fold's inner screen uses Samsung's own SDC-produced "InfinityFlexDisplay" foldable OLED screen, while the touch layer employs On-Cell Y-OCTA touch technology.

Subsequently, Chinese smartphone manufacturers accelerated their deployment of foldable phones, and sales of related products exploded. IDC data shows that in 2023, China's foldable phone shipments reached 7.007 million units, representing a year-on-year increase of 114.5%, far exceeding the overall 6.5% growth rate of the smartphone market.

This wave has also significantly contributed to the domestic supply chain. Today, the entire foldable phone industry chain is essentially supplied by Chinese companies. Taking the inner screen, the most crucial component of foldable phones, as an example, BOE has become the industry leader. DSCC data shows that in Q4 2023, BOE's global foldable panel market share reached 42%, ranking first, while Samsung's share fell to 36%, a 40 percentage point drop from the previous quarter.

BOE not only continues to climb in terms of shipment volume but has also become a standard setter in the industry. It is understood that BOE has led the drafting and revision of a total of 103 domestic and international technical standards and participated in the revision of up to 270 domestic and international technical standards, making outstanding contributions to China's international standard formulation in flexible OLED, IoT applications, and health displays.

The tri-fold screen is not BOE's first foray. Back in December 2021, the company showcased a tri-fold OLED complete device capable of achieving a Z-shaped folding form. By adding a folding operation, it can transform from a phone to a tablet, meeting user needs in entertainment, work, and communication.

BOE's pioneering demonstration of a tri-fold OLED complete device and becoming the only tri-fold screen mass-production company in the world is inseparable from its high regard for cutting-edge technology and continual investment in research and development. Financial reports show that from 2021 to 2023, BOE's research and development expenses were 10.62 billion yuan, 11.1 billion yuan, and 11.32 billion yuan, respectively. Research and development investment has consistently remained at around 7% of revenue, with a portion of 1.5% of revenue dedicated to basic and cutting-edge technology research.

Continued large-scale research and development investment has allowed BOE to construct a deep technological moat. Official data shows that as of 2023, BOE has accumulated over 90,000 self-developed patent applications, including over 30,000 related to flexible OLEDs.

To meet the needs of downstream customers, BOE is also continuously increasing its production capacity. In the field of flexible displays, BOE has established three generation 6 flexible OLED production lines in Chengdu, Chongqing, and Mianyang, primarily catering to small and medium-sized applications. As OLED penetrates medium-sized applications like tablets, laptops, and monitors, BOE has recognized the market dynamics and has invested in China's first generation 8.6 AMOLED production line, accelerating the advancement of the domestic OLED display industry to the medium-sized development stage.

With its strong technological advantage and large production capacity, BOE has won the favor of numerous smartphone manufacturers. Official data shows that in 2023, BOE's flexible OLED shipments reached nearly 120 million units, setting a new record for annual shipments.

While leading the smartphone upgrade wave, BOE is also accelerating innovations in OLED technologies like slide-to-roll and curved screens, exploring commercial applications with application vendors in areas such as laptops and automotive displays.

The launch of the Huawei MateXT Masterpiece signifies not only the arrival of the tri-fold phone era but also showcases the strong capabilities of the domestic supply chain. As the domestic supply chain continues to mature and its technology progresses, we will witness the emergence of more innovative smartphone products in the future, leading the smartphone industry into a new phase of development.