Investing.com - According to an analyst note from UBS on Wednesday, Apple Inc (NASDAQ:AAPL) could be working on a "foldable" iPhone that could be released as early as 2026. The Information's website suggests that Apple is developing a foldable iPhone that folds widthwise like a clamshell, similar to the Samsung (KS:005930) Galaxy Z Flip.
However, consumer preference for a foldable device remains low as per UBS's analysis. In a smartphone survey powered by UBS Evidence Lab, involving approximately 7,500 respondents, it was found that a broken phone, battery wearing out, and a phone running slowly are the primary reasons driving an upgrade.
Notably, a "foldable" smartphone was the only attribute that registered a negative net score (-22%). Approximately 83% of respondents cited "battery life" as the key driver, followed by price at 79% and network quality at 78%.
To date, foldable volumes are a tiny percentage of the smartphone market. On a trailing 12-month basis through the end of May, UBS estimates the global smartphone market was roughly 1.2 billion units.
Over the same period, Samsung, the most aggressive vendor selling foldable/flip devices, sold just around 8 million "foldable" devices, largely driven by the Galaxy Z Flip 5.
This translates to less than 70 basis points of the total smartphone market, hardly an endorsement of the form factor in UBS's view.
Other vendors like Alphabet Inc (NASDAQ:GOOGL) with its Pixel Fold also witnessed limited success, selling only approximately 250,000 units on an LTM basis.
Analysts at UBS maintained their Neutral rating for Apple, with a price target of $190