Apple Inc.'s (NASDAQ:AAPL) rumored foldable iPhone could finally solve the biggest problem plaguing foldables: the ugly display crease that keeps many buyers away.

As global foldable smartphone shipments jumped 18% in 2025, consumers are demanding thinner designs, stronger hinges, and near-invisible folds — and Apple appears ready to make crease-free screens its biggest weapon in the next smartphone race.

Counterpoint Research analyst Varun Mishra said foldable smartphones continued gaining traction in 2025 as OEMs expanded their portfolios and consumers became more aware of the category. However, the segment still represented only 1.6% of global smartphone shipments.

Foldable Brands Focus On Crease Reduction

Mishra said on Wednesday that global foldable smartphone shipments rose 18% year over year to 19.6 million units in 2025, led by ongoing design improvements from smartphone makers.

He said OEMs continue refining foldables by making devices thinner, improving battery and camera performance, and minimizing display creases.

Mishra identified the crease as one of the biggest pain points for both existing users and potential buyers because it affects media consumption and photography experiences.

Counterpoint Research's China survey showed that existing foldable users ranked "minimizing crease/hinge" as the top improvement area for both fold and flip devices.

Potential buyers in China also ranked crease reduction as the second-most important purchase consideration after battery life.

Apple Targets A Crease-Free Foldable iPhone

Mishra said Apple plans to launch its foldable iPhone in the second half of 2026, featuring a liquid-metal hinge and crease-free display technology.

He said Apple built on solutions already introduced by Samsung Electronics Co., Ltd. (OTC:SSNLF) and OPPO while adding its own structural innovations.

According to Counterpoint Research Display Service, Apple intends to use a dual-Ultra Thin Glass structure by replacing the PET back plate beneath the Polyimide substrate with UTG.

Mishra said the dual-layer glass design improves rigidity and distributes stress more evenly during folding, helping create a smoother bend and significantly reducing crease formation.

He also noted that Apple is considering replacing the traditional OCA/PET coating stack with a high-viscosity coating to reduce creases further and improve shock absorption.

China Leads The Foldable Smartphone Market

Mishra said China remained the world's largest foldable smartphone market in 2025, accounting for nearly 44% of global foldable shipments.

He said larger displays in compact form factors remain the key differentiator for foldables, but brands still need to solve durability and usability concerns to drive broader adoption.

Mishra added that crease reduction could become a critical conversion factor for brands competing in the foldable segment.

Apple Price Action

AAPL Price Action: Apple shares were down 0.03% at $287.42 during premarket trading on Thursday. The stock is trading near its 52-week high of $288.62, according to Benzinga Pro data.

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