iPhone 17 Base OLED Panel Costs 42% Less to Manufacture Than ‘Pro’ Models, Even with ProMotion Technology Standardized

Apple has transformed its iPhone 17 lineup in 2023 by incorporating ProMotion technology into its base model—an outstanding decision that significantly enhances its flagship smartphone series. This strategic move, coupled with a plethora of other upgrades, enables Apple to maintain the affordable price point of $699. This balance between innovation and cost is a key factor in the iPhone 17’s soaring popularity, especially in major markets such as China.

One of the pivotal reasons Apple has managed to keep the iPhone 17’s pricing consistent with the previous iPhone 16 model is its efficient display cost management. Recent reports indicate that the OLED display in the base model of the iPhone 17 is approximately 42% less expensive than the displays used in the iPhone 17 Pro and iPhone 17 Pro Max. This cost efficiency gives Apple significant flexibility in determining the Manufacturer’s Suggested Retail Price (MSRP) for this particular iPhone variant.

Cost Breakdown: Base iPhone 17 OLED at $40 vs. Pro Models at $70

According to insights from Chosun, backed by UBI Research, the iPhone 17’s display supply chain is predominantly led by Samsung and LG, which together account for 98% of all displays provided to Apple. Specifically, Samsung controls 64.5% of the market with an impressive 57.3 million units, while LG follows as a close second with 30.3 million units, representing a 34.1% share. In stark contrast, BOE has made little impact on Apple’s supply chain, yielding only 1.3 million units and a mere 1.4% market share.

LG specifically supplies OLED panels for the iPhone 17, iPhone Air, and iPhone 17 Pro Max. This latest report suggests that the production cost for the OLED display in the base iPhone 17 is approximately $40, while for the Pro models, Apple incurs costs ranging from $60 to $70. This disparity in panel pricing is particularly noteworthy given that it is the first year Apple has rolled out ProMotion technology across all models, yet manages to achieve a lower cost for the base model’s panel.

Examining the display specifications reveals that all three models—the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max—offer identical peak brightness levels and support HDR10 compliance. However, the iPhone 17 Pro Max boasts a higher resolution OLED display compared to its Pro and base counterparts. This might account for the increased manufacturing complexity, as the Pro models likely feature ultra-slim bezels that are more challenging and expensive to produce. We welcome thoughts on what might be driving this price discrepancy in display costs.

For more information, visit the original source: Chosun

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