Apple's first foldable iPhone promises to be one of the company's most exciting releases in years, but buyers should expect a very high price tag. Driven by the high cost of manufacturing flexible displays, the upcoming device could become the most expensive iPhone ever released.
[Concept]
The primary factor behind the massive price is the screen itself. According to Bloomberg's Mark Gurman, foldable panels remain some of the most difficult and expensive components to produce at scale. Because Apple relies on Samsung Electronics to supply these screens rather than building them internally, the company pays a premium that Samsung's own mobile division manages to avoid.
Samsung currently charges nearly $2,000 for its flagship foldables. Apple will not only absorb the supplier markup but will also need to maintain its industry-leading profit margins. Passing those elevated component costs directly to the consumer could push the retail price of the foldable iPhone into the same range as today's most expensive foldables.
The screen isn't the only thing inflating the bill of materials. Getting a device to fold without adding excessive bulk requires entirely new engineering. Apple is reportedly turning to an advanced liquid metal hinge and custom alloys to keep the chassis thin and durable. Add a high-end outer display and a premium camera system, and the manufacturing costs quickly compound.
Apple doesn't seem worried about the sticker shock, though. The company is betting its wider aspect ratio will fix the cramped feeling that frustrates users of competing foldables. By designing the internal display with video playback and gaming in mind, Apple expects many buyers will still be willing to pay a significant premium for the new form factor.