Ming-Chi Kuo reports that the foldable iPhone might have less costs for manufacturing than what was previously thought, due to significant reductions in the pricing of hinge components. He also reported that the foldable iPhone is anticipated to bear an ASP or average selling price of $70 to $80 when the device enters mass production. This is below the market expectation of $100 or higher.
The reduced cost was attributed to the design assembly optimization and the influence of Foxconn in production scaling. Foxconn has established a joint venture with SZS or Shin Zu Shing, a hinge maker in Taiwan, to take on most of the hinge orders Apple placed. The reduced cost could work to Apple’s benefit.
Hinge mechanisms are important components for foldable gadgets because it determines the long-term durability of the device and the reliability of the movement on the screen. Apple’s first foldable device is anticipated to be released in the fall next year, along with the iPhone 18 Pro, iPhone 18 Pro Max and the iPhone Air 2.
