(Yicai) April 7 -- Hon Hai Precision Industry, the Taiwan-based Apple supplier better known as Foxconn, has begun trial production of the first foldable iPhone, China Securities Journal reported.

Apple has guided suppliers toward a second-half launch for the large new phone, according to the report, which cited sources in the industry supply chain. Apple’s big user base points to strong potential demand for a folding handset from the California-based consumer electronics giant, though sales will ultimately depend on price, one of the sources pointed out.

Lens Technology has provided ultra-thin glass, polyethylene terephthalate film, glass brackets, and three-dimensional glass covers for the foldable iPhone, the precision manufacturing firm said at a recent investor briefing. The Changsha-based firm expects to benefit much from this high-value project in which it has a leading share, it noted, adding that production ramp-up is on schedule ahead of the second-half launch.

The new product would require more components, including higher manufacturing standards for some, said Shenzhen-based Avary Holding, which supplies printed circuit boards for Apple. However, it declined to comment further because the foldable iPhone has not yet hit the market.

When touching on the subject of foldable devices, Lingyi iTech Guangdong said last summer that it had made an important breakthrough in a high-end vapor chamber project with a key North American client. The company is a major supplier for Apple.

China's foldable phone shipments climbed 9.2 percent to around 10.01 million units last year, per figures from International Data Corporation. Apple's entry would push the market into a new phase of competition, with early demand likely to come primarily from existing iPhone users, given the premium positioning of these devices, according to Counterpoint Research.

The first foldable iPhone is poised to accelerate broader market adoption, Guosheng Securities said, adding that ongoing advances in crease-free display technology should drive up the volume and price of such phones, injecting new momentum into the supply chain.

Editor: Martin Kadiev