These Four “Picks and Shovels” Plays are the Best Way to Play Foldable Phones’ Potential

Odds are you’re probably reading this on a smartphone.

That’s not a surprise. But what might surprise you are the big changes about to come to your phone.

Last year, for the first time ever, U.S. adults began spending more time on their mobile devices in an average day than they did watching TV –three hours and 43 minutes on mobile devices versus three hours and 35 minutes watching TV, according to eMarketer.

I’m right there with you. Using a smartphone is just more convenient and allows you to toggle between different types of media – video, music, email, texting, games, and more –all in one place.

And during the COVID-19 pandemic, use has only increased. In June alone, smartphone use skyrocketed 45%!

All this is happening just as the next generation of smartphones is about to come online. Only this time there is a big difference…

The next generation of smartphones will be foldable.

I’m not talking foldable like the old flip phones that opened and closed on a hinge – with a screen on one side and buttons on the other. I’m talking about an honest to goodness smartphone that can fold into pretty much whatever device you need.

I know that may sound crazy. But I got my first taste of what these incredible new phones can do at the huge CES 2020 show earlier this year… and now I’m a believer.

Foldable smartphones – like the one pictured above – are designed to bring even more convenience to people juggling multiple mobile devices. You can adjust the screen size and capability depending on what you need.

It can literally fold into and out of virtually any device as easily and as effortlessly as folding a piece of paper.

Say you’re texting a friend, and they send you a highlight clip from last night’s football game. You can unfold your smartphone into a tablet to watch it on a larger screen. Ready to go for a jog? Fold it back into a smartwatch and bring it with you. When you’re done, unfold it into a laptop to finish off the workday.

The possibilities are endless, so it’s no surprise that the world’s largest smartphone makers are scrambling to bring these phones to market.

Alphabet (GOOGL) has already invested nearly $1 billion in foldable phones.

LG has allocated $8.5 billion to foldable displays, saying it wants to make them the new standard.

Chinese tech behemoth Huawei spent more than $15 billion on research and development in 2018.

Samsung, the world’s largest smartphone maker, has already sold twice as many foldable phones than it thought it would. Now the company predicts it will sell six million foldable phones this year – or three times more than what Apple (AAPL) sold in 2007 when it released the first iPhone.

There are even rumors that Apple is also working on a foldable prototype.

Of course, the new phones have their doubters.

There were plenty of iPhone naysayers back in 2007, too, when the product first launched.

Microsoft’s (MSFT) CEO at the time, Steve Balmer, rejected Apple’s new smartphone initially. In an interview with Bloomberg, he laughed off the idea, saying it would never sell because of the high price tag of around $500.

Jim Balsillie, the co-CEO of BlackBerry (BB) maker Research In Motion, described it as “one more entrant into an already busy space with lots of choice for consumers.”

And Nokia Chief Strategist Anssi Vanjoki said the iPhone would remain a niche product.

Well, we know how that story ends…

Apple went on to crush the competition – including Nokia and BlackBerry, which  didn’t spot the opportunity. It’s since sold more than two billion iPhones and turned into the world’s largest public company, with a market capitalization of $1.6 trillion.

A similar opportunity to gain market share and dominate the next-generation smartphone field is cropping up today.

And this time, major smartphone makers are diving in headfirst. Smart investors should be, too.

Only about one half of one percent (0.05%) of the world’s population is using foldable phones, but we will ultimately see 3.2 billion smartphones being replaced by foldables. And I predict the industry will grow 5,500% in a few years to reach a $13.8 billion market!

Many investors are taking a conventional route to gain from foldable phones’ success. They’re looking at the obvious plays – the phone manufacturers like Samsung, Apple, and LG.

But not us.

Instead, I believe that the perfect strategy for investing in the foldable phone craze lies elsewhere – in the “picks and shovels” companies that make the “guts” of these next-generation phones.

Back in 2007, after Apple released the iPhone, a number of its suppliers hit it big. Semiconductor producer Skyworks Solutions (SWKS) is up 18X since 2007.

And Cirrus Logic (CRUS) – a maker of audio, voice, and haptics products – has climbed nearly nine-fold since 2007.

We can make money in a similar fashion with foldable phones.

The biggest change between future smartphones and the ones we have now is the bendable screen. Without that technology, foldable phones are impossible.

That’s why I see such big opportunity in the select companies responsible for making the foldable displays. And it’s why I’ve created a portfolio of four such stocks in my Investment Opportunities newsletter.

It’s not too late to get in. Click here to get the names of these companies and learn how to cash in on the biggest smartphone breakthrough in a decade.

P.S. Ten years from now, we’ll look back on the current displays the way we view old CRT TVs today. And the company I’ve found will help make that possible – thanks to its deals with the likes of Apple, Samsung, and LG. It’s just one of my four picks for the new Foldable Phones Portfolio at Investment Opportunities.

Matt McCall’s MoneyLine Podcast

Click here to listen to Matt McCall’s MoneyLine podcast! This week, Matt asked his Twitter followers what stocks they wanted him to talk about… and they bombarded him with more than 100 tickers! He gives you his thoughts on 20 of them. Matt also talks about the red-hot electric vehicle sector and discusses the latest jobs number, which sent the Nasdaq to new all-time highs.

You can subscribe to this podcast on iTunes, Stitcher, Spotify, or wherever you listen to podcasts.

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