Apple (AAPL, Financials) is gearing up to launch its first foldable iPhone in the second half of 2026, and it's turning to a familiar rival for help. The company has selected Samsung Display as the exclusive supplier of OLED panels for the device, marking a rare shift from its usual multi-supplier strategy.

Industry sources say Apple chose Samsung for its proven ability to reduce screen creases—a crucial issue for foldable phones. The panels will likely resemble those used in the iPad Mini, with a 7.8-inch internal screen and a 5.5-inch external display. Pricing is expected to start around $2,000, putting it head-to-head with Samsung's own Galaxy Z Fold lineup.

Samsung Display is expected to start deliveries by late 2025 or early 2026. The exclusive contract could help the company reclaim lost ground in the foldable OLED market, where its share had dropped to about 40% last year. Analysts now expect that number to climb back toward 70% in 2026, boosted by Apple's order.

Initial projections put the foldable iPhone's annual production at 9 million units, but some forecasts now see it surpassing 15 million. That kind of volume could breathe new life into the sluggish foldable segment, which saw just 2.9% growth last year, according to Counterpoint Research.

The move is also seen as a strategic signal from Apple—it's placing quality above price and taking a careful but deliberate step into a new product category. Details like the phone's final design or name haven't been confirmed yet, but its success could shape Apple's future in foldable devices, including iPads and laptops.