Apple’s Foldable iPhone Production Cost Lower Than Base iPhone 16 Price; Report Reveals Potential 64% Gross Margin Per Unit

The intricate process of mass-producing a foldable iPhone involves considerable manufacturing costs, indicating that Apple will likely price the device significantly higher to uphold its profit margins. Recent analyses delve into the projected ‘Bill of Materials’ (BOM) for this eagerly anticipated flagship, scheduled for release in late 2026. Initial estimates suggest that the production costs will closely approach the retail price of the base iPhone 16 in the U. S., prompting speculation about the final price point of the new device.

Potential for Higher Margins with Lower Sales Volume for the Foldable iPhone

A detailed simulation conducted by UBS analyst J. Yoon estimates the BOM for the foldable iPhone at around $759, just $40 less than the MSRP of an unlocked iPhone 16. A significant factor contributing to this projected BOM is Apple’s ongoing efforts to address the visibility of creases, a persistent issue for many foldable smartphone manufacturers. Recently, Ming-Chi Kuo from TF International Securities highlighted that the South Korean company Fine M-Tec will supply metal plates integrated with the device’s OLED panel produced by Samsung, employing laser drilling techniques.

This additional manufacturing process aims to maintain the elasticity of the OLED panel over time, thus preventing visible creases from developing. Another possible solution, according to Ross Young, the CEO of Display Supply Chain Consultants (DSCC), is the use of a chemically treated thicker front glass. It remains uncertain whether Apple will implement both approaches, but it is anticipated that these enhancements will elevate the overall production costs, consequently increasing the BOM figure.

In other developments, industry insider @Jukanlosreve shared valuable insights on X, indicating that to counteract the escalating costs associated with the titanium alloy chassis, liquid metal hinge, and cellular technology, Apple may consider sacrificing some specifications of its A-series system on chip (SoC), memory, and camera components. This strategy could enable the foldable iPhone to be priced between $2, 000 and $2, 400, although even with these compromises, the device will still represent a significant financial investment, with Kuo predicting the price could range from $2, 000 to $2, 500.

Despite the high pricing, the potential MSRP suggested by UBS could allow Apple to achieve a gross margin between 58 and 64 percent, surpassing the iPhone 16’s 47 percent margin. However, it’s worth noting that the foldable iPhone is rumored to launch without Face ID due to design challenges, a decision that may deter prospective buyers. For now, the tech community awaits further details to better understand what this innovative product will truly offer when it finally reaches the market.

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