Timm Schulze-Melander on foldable iPhone: ‘Match made in heaven for Apple’

I SAID, I DO EXPECT PRICES TO GO HIGHER. >> ALL RIGHT. THANKS VERY MUCH. REALLY APPRECIATE ALL YOUR THOUGHTS TODAY. >> THANK YOU. KELLY. >> GOOD TO CHECK IN WITH YOU. VAHAN JANJIGIAN OF GREENWICH WEALTH MANAGEMENT. MEANTIME, SPECULATION IS RIFE OVER APPLE'S NEW FOLDABLE IPHONE. OUR NEXT GUEST SAYS THE COMPANY WILL GET A BIG BOOST FROM ITS EXPECTED LAUNCH NEXT MONTH. LET'S BRING IN ROTHSCHILD AND CO RED BURNS HEAD OF TECHNOLOGY, HARDWARE AND SEMI RESEARCH TIM SCHULTZ. MELANDER. TIM IT'S GREAT TO HAVE YOU HERE. WELCOME. >> THANK YOU FOR HAVING ME. KELLY. >> A LOT OF PEOPLE EXCITED ABOUT YOUR NOTE TODAY. WHAT CAN YOU TELL US ABOUT THE FOLDABLE IPHONE. >> SO WE HAVE A PRETTY POSITIVE TAKE. AS YOU'VE JUST MENTIONED, WE'VE LOOKED AT APPLE'S TRACK RECORD OF ENTERING NEW MARKETS. IT'S ONE THAT WE'RE VERY IMPRESSED BY, BOTH IN TERMS OF THE MARKET SHARE IMPACTS THAT THEY HAVE, AS WELL AS THE WAY IN WHICH APPLE'S ENTRY FREQUENTLY ACCELERATES THE GROWTH AND THE SIZE OF SUCH MARKETS. IT'S A SURPRISE TO US THAT APPLE HASN'T BEEN IN THE FOLDABLE SEGMENT BEFORE. IT'S AN ULTRA PREMIUM SEGMENT. PRICES TEND TO BE SOMEWHERE IN THE REGION OF 80% ABOVE EVEN HIGH END HANDSETS. AND SO FOR US, THIS IS A REALLY NEAT, YOU KNOW, BASICALLY KIND OF MATCH MADE IN HEAVEN FOR APPLE. THE BRAND, THE STYLING DESIGN AND THE CONSUMER POSITIONING ALL SUGGEST TO US THAT A FOLDABLE PHONE, THE IPHONE ULTRA, WHICH WE EXPECT TO LAUNCH NEXT MONTH, IS GOING TO BE A SUCCESSFUL PRODUCT FOR THEM. >> SO LISTEN, I'M JUST GOING TO SAY THIS AS A, THIS IS MY GUT REACTION WHEN I DO. WE HAVE I SEE PHOTOS OF THIS FOLDABLE IPHONE ALL OVER THE INTERNET. I DON'T KNOW WHETHER TO TRUST THEM OR NOT. I DON'T LOVE IT. I'M JUST GOING TO BE HONEST. I THINK IT'S A LITTLE THE CREASE. IT JUST SEEMS CLUNKY. IT DOESN'T SEEM LIKE THE ELEGANT, SOPHISTICATED CONSUMER PRODUCT THAT I'VE COME AND I KNOW OTHER HANDSET MAKERS HAVE THEM, BUT I DON'T LIKE THEM EITHER. SO WILL I LOOK BACK ON THIS AND LAUGH A YEAR FROM NOW, WHEN I'M HOLDING ONE OF THESE SHINY NEW PRODUCTS? >> YOU KNOW WHAT, KELLY? IT'S HORSES FOR COURSES. SO FOLDABLE PHONES ARE REALLY BIG IN CERTAIN MARKETS AND REALLY NOT BIG IN OTHERS. SO IN CHINA, FOR EXAMPLE, A VERY IMPORTANT MARKET THAT WE EXPECT FOR FOR THE HANDSET. THERE ARE CONSUMER POCKETS IN THE US AND IN DEVELOPED MARKETS THAT ARE STRONG FOLDABLE PRODUCT, YOU KNOW, FOLDABLE MARKETS FOR, FOR FOR FOR THE IPHONE ULTRA. AND THERE ARE OTHERS WHERE THE PRODUCT JUST DOESN'T LAND. AND MAYBE YOU'RE, YOU'RE ONE OF THEM. I WILL SAY, WHEN WE LOOK AT THE SPECS THAT WE EXPECT, TO YOUR POINT, YOU KNOW, THE LIQUID METAL HINGE, THE WORK THAT THEY'RE DOING ON THE DISPLAY, WE EXPECT THIS TO BE A VERY STRONG CONTENDER. IS IT IS IT GOING TO CONVERT EVERYBODY ON DAY ONE? MAYBE NOT. YOU KNOW I THINK LET'S SEE WHERE THE TEMPERATURE IS AFTER 6 OR 9 MONTHS IN OUR IN OUR FORECAST, WE THINK WE'RE SITTING ON THIS ALREADY PRETTY CONSERVATIVELY. THE ASP, THE VOLUME UPLIFT AND THE NEW MARKET ENTRY, THAT IS, WE EXPECT NOT GOING TO CANNIBALIZE IN A MEANINGFUL WAY THE SLATE, YOU KNOW, TAB FORM FACTOR IPHONE