Apple's first foldable iPhone could cost less than you expected
UBS analysts say that Apple could price its first foldable iPhone in a lower price range than expected.
Investment firm UBS recently released a note to its clients about the iPhone Fold. According to UBS, Apple will release a book-style foldable in the style of the Samsung Galaxy Z Fold line next year. The analysis done by the Swiss-based company shows that Apple's Bill of Materials (BOM) for the foldable iPhone could be $759, 4% less than what Samsung pays for the parts to build the Galaxy Z Fold SE ($790).
UBS says that Apple will be able to save money on memory, application processors, and camera modules. The securities house sees Apple limiting production of its first foldable to 10 million to 15 million units. While initial estimates called for Apple to price its first foldable in a range between $2,000 and $2,400, UBS says that Apple's discipline on costs could allow it to price the phone at $1,800-$2,000. That would still make it the most expensive iPhone ever. The contribution margins are forecast to be in a range of 53%-58%, which matches the same margins on Samsung's foldables and tops the contribution margins on the iPhone 16 line.
The report to UBS clients confirms previous reports that say Samsung Display will be the main supplier of the 7-inch internal OLED screens for the iPhone Fold. It is expected that as Apple starts expanding production of its foldable phone, LG Display will also get some orders from the tech giant. Suppliers for parts such as the foldable's titanium casing and its liquid metal hinge will include companies like Lens Technology, Amphenol, and Hon Hai (Foxconn).
Speaking of Hon Hai (Foxconn), UBS says it will be the primary assembler of the iPhone Fold, with Luxshare as the secondary assembler.
UBS believes that Apple's long-awaited entry into the foldable smartphone market will speed up the adoption of foldable devices in smartphones, tablets, and notebooks in the medium to long term. The investment firm's analysts also say that Apple's late arrival into foldables might actually be a positive for it. The supply chain for foldables is now mature, and the technology has been refined. Not only does this mean that Apple has the ability to build a more advanced foldable, but it might be able to do it at a lower price than you'd expect.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed:
To help keep our community safe and free from spam, we apply temporary limits to newly created accounts: