Investing.com -- According to TF International Securities analyst Ming-Chi Kuo, Dongguan EonTec is positioned to benefit from the upcoming release of the foldable iPhone. Apple (NASDAQ: AAPL )’s decision to use liquid metal in the hinges of the new device is expected to bring significant rewards to EonTec, the exclusive supplier of the material.

Apple’s decision to use liquid metal, a material previously used in smaller components like SIM ejector pins, marks its first large-scale application in a crucial mechanical part. The company’s move aims to improve the durability, screen flatness, and reduce crease marks in its foldable iPhone. The hinges, a key component, will be made from liquid metal using a die-casting process.

By the end of 2024, EonTec had shipped over 10 million central shafts, which are key hinge components made from liquid metal. The rise of foldable smartphones, especially with Android brands preparing to compete with Apple’s upcoming foldable iPhone, is expected to boost the liquid metal market.

The average selling price (ASP) of liquid metal per foldable iPhone is estimated to be between RMB 70–100. Based on the first-generation foldable iPhone alone, EonTec’s revenue could reach RMB 1.5–2 billion, marking a potential increase of 100–200% from this single order. With more competitors in the foldable phone market turning to liquid metal, EonTec’s growth may see further acceleration.

EonTec, which holds a 60% stake in Dongguan Yihao Metal, a subsidiary responsible for the production and shipment of liquid metal components, may look to increase its ownership. This move is anticipated as industry surveys indicate that EonTec could seek to enhance its stake in Yihao Metal to fully benefit from the subsidiary’s profits, given the strong growth potential in the liquid metal business.

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