14 DAY TRIAL // Rumor has it that the iPhone 8 will be one pretty expensive smartphone, and while some analysts believe it could reach $1,200 in the top configurations, others claim it won’t be sold for more than $1,000.
But not matter which one of the two predictions is accurate, the iPhone 8 will still cost more than what most people would afford, and according to new information, it won’t be Apple the one to blame for this.
Analyst house KGI, which has an excellent track on Apple information, says the iPhone 8 will cost that much because of Samsung, which builds several OLED parts for the new device.
Basically, it all starts with Apple’s intention of equipping the iPhone 8 with an OLED screen. Samsung, which at this point seems to be the only company that can match Apple’s requested yield rate, will manufacture the flexible OLED panel and the OLED touch panel.
LG could help keep the iPhone cost down
But because it’s the only company building these parts, Samsung charges more than usual, so instead of the $45 to $55 price that Apple has to pay for an LCD panel, the firm would now have to deal with a cost of as much as $130 per unit for OLED. This in turn translates to a bigger final price for the customer, as Apple needs to cover all the costs that it has with manufacturing and parts.
This is one of the reasons Apple is currently trying to poach another OLED manufacturer, with the company said to invest in LG production lines that would be in charge of iPhone screens exclusively. But according to new reports, LG won’t be able to match Apple’s required yield rate until at least 2019, so Apple will have to work with Samsung for another year.
Full details about the iPhone 8 pricing will be revealed at the company’s September 12 event next week, with pre-orders expected to begin on September 15, ahead of the start of sales on September 22.