Kuo adds that the hinge cost decline is mainly the result of design optimisation and Foxconn’s large-scale manufacturing efficiency, rather than cheaper raw materials. The analyst also expects Luxshare-ICT to become an additional hinge supplier after 2027, increasing competition within Apple’s supply chain.
The report outlines several internal challenges. Amphenol’s smaller share may be a cautious business decision, as the company focuses more on other high-growth areas such as AI hardware. Meanwhile, SZS’s profits may remain limited, since Foxconn leads the JV and takes a larger portion of the earnings. SZS also receives fewer upstream component orders, reducing its potential gains.
Because the hinge ASP is lower than expected, component suppliers could face tighter profit margins than analysts initially predicted. Overall, the new data paints a clearer picture of the Apple iPhone Fold supply chain — a setup where Apple benefits most from reduced production costs, while partners like SZS and Amphenol experience narrower profitability.
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