Electronic component shares rise on news of foldable Huawei phone

Shares in smartphone component suppliers, including vendors producing screens, batteries, fingerprint scanning parts and metal materials, surged on the domestic markets on Monday, following Huawei Technologies releasing the world’s first foldable 5G smartphone.

Shenzhen-based Huawei on Sunday unveiled the Mate X, a foldable 5G-ready smartphone, at an event ahead of the 2019 Mobile World Congress opening in Barcelona.

The Mate X has a 6.6-inch screen, which can be opened out into an eight-inch OLED screen to allow the user to read or watch video. It will be priced at 2,299 euros (US$2,597), marking Huawei’s latest step in tech innovation and expansion in the premium 5G market.

The news has boosted the share prices of Huawei’s component makers, including many 10 percent daily cap surges on Monday, according to Guosen Securities.

Shenzhen-listed BOE, the biggest panel maker on the Chinese mainland, surged 10 percent to 4.19 yuan (63 US cents). BOE, the screen supplier of Huawei’s Mate 20 models, is believed to offer new-technology screens for Huawei’s new foldable model. Shanghai-listed fingerprint scanning system provider Goodix, and Shenzhen-listed battery maker BYD both increased by more than 6 percent on Monday.

During the Mobile World Congress, the world’s biggest telecommunications event, Chinese vendors including Huawei, Xiaomi and Oppo all launched new models. 

But researchers warned that foldable models will only hold niche market share within one or two years.

In 2019, foldable phones are expected to take 0.1 percent of market share, which will increase to 1.5 percent in 2021, said researcher TrendForce.