Investment firm UBS recently shared insights on Apple's upcoming iPhone Fold, highlighting a potential pricing strategy that could surprise consumers. According to UBS, Apple's cost to produce the foldable device could be lower than expected, allowing the tech giant to offer it at a competitive price point. The analysis indicates that Apple's cost of materials for the iPhone Fold may be $759, which is 4% less than what Samsung pays for its Galaxy Z Fold SE components. This cost-saving approach could result in Apple pricing the iPhone Fold between $1,800 and $2,000, making it the most expensive iPhone in history.
UBS predicts that Apple will achieve significant contribution margins of 53%-58% with the iPhone Fold, matching Samsung's foldables and surpassing the margins of the iPhone 16 line. The report suggests that Apple plans to limit the initial production of the foldable device to 10 million to 15 million units. Despite initial speculations of a $2,000-$2,400 price range, Apple's focus on cost efficiency could lead to a more affordable offering for consumers.
The report also confirms that Samsung Display will supply the 7-inch internal OLED screens for the iPhone Fold, with potential future involvement from LG Display as production expands. Key suppliers for components like the titanium casing and liquid metal hinge include Lens Technology, Amphenol, and Hon Hai (Foxconn). primary assembler for the iPhone Fold, with Luxshare serving as the secondary assembler.
UBS believes that Apple's entry into the foldable smartphone market will accelerate the adoption of foldable technology in various devices. The mature supply chain and refined technology in the foldable market could enable Apple to offer an advanced foldable device at a competitive price point, potentially reshaping the industry's pricing norms.
