Lens Technology, a Key Apple Supplier, Sees H1 Net Profit Nearly Halved, Pinning Hopes on Foldable Screens to Drive H2 Recovery
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Lens Technology's first-half net profit nearly halved to RMB 577 million as surging memory prices squeezed the consumer-electronics supply chain; the company is banking on high-end component orders for Apple's foldable device to turn the second half around.
How bad was the first half?
Net profit for the six months to June fell to RMB 577 million, down nearly 50% year-on-year.
Revenue slid 12.4% to RMB 28.9 billion.
This means → not just a dip — profit was cut roughly in half while the top line shrank too. Both ends of the P&L were under pressure at once.
Why did profit fall so sharply?
The primary driver: a sharp rise in memory prices across the consumer-electronics industry, compressing margins for downstream suppliers.
In plain terms = Lens Technology makes glass covers for phones, but upstream raw-material costs surged across the supply chain, and that cost pressure flowed straight through to its bottom line.
Demand also weakened — the company was forced to cut capacity at its Xiangtan plant.
Currency fluctuations added further margin erosion on top of the cost squeeze.
What is the second-half turnaround plan?
Lens Technology is betting on high-end component supply for a foldable-device project widely believed to be for Apple.
The key products: ultra-thin glass (UTG) — specialty glass thin enough to bend for a folding screen — colorless polyimide film (a transparent plastic layer that protects the folding display), and 3D glass covers.
This means → the company isn't just chasing one more order. It is positioning itself to upgrade from a standard slab-phone parts supplier to a core supplier in the foldable era.
How solid is this bet?
Management says these products have "complex manufacturing processes and significantly higher added value," making the company a core beneficiary of the shift from slab phones to foldables.
TF International analyst Ming-Chi Kuo (郭明錤) has previously named Lens Technology as a key supplier of ultra-thin glass for Apple's flexible display.
The critical checkpoint is clear: whether foldable components can be delivered at volume and on schedule will directly determine how real the H2 profit rebound turns out to be.
This reflects a straightforward reality — analysts are bullish and the company is ramping production, but the timeline ultimately depends on Apple's own foldable-device schedule.
Content is for reference only, not financial advice.