Over the past two decades, the mobile phone industry has consistently followed Wright's Law, leveraging economies of scale to reduce costs and establish a virtuous cycle of profitability. However, in 2026, the surge in demand for memory capacity—driven by the proliferation of AI large models—disrupted this established model. Prices for key mobile phone components skyrocketed, drastically reshaping cost structures. Consequently, several mobile phone manufacturers were compelled to raise prices for their existing models, yet they still found it challenging to fully offset the escalating costs.

Against this challenging backdrop, foldable-screen phones have emerged as a game-changer, providing a breakthrough for the industry to re-price its offerings. These innovative devices have garnered category premiums due to their unique and novel form factors. Leading manufacturers, including Huawei, Xiaomi, and Samsung, have all introduced high-priced foldable-screen models, with the market responding positively to their pricing strategies.

However, a closer look reveals that, excluding Apple, the foldable-screen shipments of other manufacturers are actually experiencing a contraction. Moreover, the high production costs associated with foldable-screen phones have left some models operating at a financial loss. Currently, the foldable-screen form factor has converged towards 7-8-inch models, with proportions reminiscent of traditional paper, leading to a bifurcation in price bands. Older form factors are witnessing price reductions, while newer iterations are commanding higher prices.

Yet, as the homogenization of form factors intensifies, there is a looming risk that the category premiums associated with foldable screens may disappear. While AI is widely regarded as a critical variable for the industry's future growth, it currently only adds to costs without providing substantial support for price bands. Although the mobile phone industry has managed to achieve short-term price increases through the introduction of foldable screens, it has yet to devise a long-term competitive strategy. The room for further price hikes is gradually narrowing, posing a significant challenge for manufacturers seeking sustainable growth.