The iPhone manufacturing costs of 2018 will be lower than those of the iPhone X. According to a new DigiTimesreport, the next iPhone will be 10% cheaper to manufacture than their predecessor. As a result, will Apple decide to sell its new range below the symbolic threshold of € 1000?
In September 2017, Apple lifted the veil on the iPhone X, the most expensive consumer smartphone in the world.Sold at an exorbitant starting price of € 1159, the flagship was a resounding success. Thanks to its high price, the iPhone X has however allowed Apple to earn more money than all the Android builders gathered in 2017. As suggested by Apple’s annual financial results, the brand has indeed sold less iPhone but on average $ 100 more expensive than a year ago.
iPhone 2018: manufacturing costs lower than the iPhone X, prices will they go down?
According to DigiTimes, the main successor of the iPhone X will be provided with a 5.85-inch OLED screen. The Apple brand has managed to reduce the manufacturing costs of its new smartphone significantly. “Apple’s supply chain says the cost of manufacturing will be 10 percent lower than the iPhone X,” said Luke Lin, an analyst at Digitimes Research.
“The cost of production of iPhone X reached $ 400 in 2017,” he adds. As Tech Insights estimates, the iPhone X cost $ 10 more to make than the Galaxy S9 +. According to Tech Insights calculations, the manufacturing costs of the iPhone X amount to $ 389.50. Among the components that drive up the price, note the OLED screen designed by Samsung.
To reduce costs in 2018, Apple would have initially considered using an LCD to leave the OLED to iPhone X Plus, a large format version with a huge screen of 6.5 inches. According to Digitimes analysts, Tim Cook’s company has finally backtracked. “Apple recently signed an agreement with Samsung Display, which guarantees that the selling price of OLED tiles will not increase,” says Digitimes. The range that will be unveiled by Apple in September 2018 will be composed of a 6.5-inch iPhone X Plus, a 5.8-inch iPhone X and a model with a 6.1 LCD screen. Inch.The lowest cost model of this new batch will not be the iPhone LCD, but the model with the OLED screen of 5.8 inches.
Over the years, the price of iPhone, like that of smartphones in general, has skyrocketed. For comparison, the iPhone 4 was sold for a starting price of 629 € in 2010. Even the iPhone 5C, a model sold as low cost, still cost 599 €. Even the iPhone 8, a timid evolution of the iPhone 7, is offered at a starting price of 809 €. And with the iPhone X, Apple has reached a new high.
As Digitimes and Tech Insights report, one of the reasons that inflate the price of iPhone production is their new OLED display. According to KGI’s Ming-Chi Kuo analyst, Samsung is requesting up to $ 120 to call for an OLED panel. With a new agreement with its Korean supplier, will Apple choose to lower prices?