UBS analysts have shared insights suggesting that Apple’s debut foldable iPhone may be priced lower than many anticipated. According to recent reports, the investment firm indicates that the foldable device, styled similarly to the Samsung Galaxy Z Fold, is expected to launch next year. UBS’s analysis reveals that Apple’s bill of materials (BOM) for the foldable iPhone is estimated at $759, slightly less than Samsung’s cost of $790 for the Galaxy Z Fold SE. This cost efficiency is attributed to Apple’s anticipated savings on memory, application processors, and camera modules.
While initial predictions suggested a price range of $2,000 to $2,400 for Apple’s foldable, UBS notes that effective cost management could allow a retail price closer to $1,800 to $2,000. Notably, this pricing would still position it as the priciest iPhone to date. The report also highlights that Apple plans to produce between 10 million to 15 million units of its foldable iPhone initially. The expected contribution margins range from 53% to 58%, aligning with those seen in Samsung’s foldable devices.
Additional insights confirm that Samsung Display will likely be the main supplier of the 7-inch internal OLED screens, with LG Display potentially receiving orders as production ramps up. For components such as the titanium casing and liquid metal hinge, suppliers including Lens Technology, Amphenol, and Hon Hai (Foxconn) are involved, with Foxconn acting as the primary assembler. UBS believes Apple’s entry into the foldable smartphone market could accelerate the adoption of such devices across various technology sectors. Moreover, the timing of Apple’s launch may work in its favor, as advancements in the foldable supply chain could allow for more sophisticated and competitively priced products.