Foldable iPhone estimated 'Bill of Materials,' retail price and other details shared by analysts

Apple’s Foldable iPhone: Production Costs Hint at Massive Profit Margins, Report Reveals

Creating a foldable iPhone is a complex endeavor, and it’s set to come with a hefty price tag. Apple aims to launch this innovative device in the latter half of 2026, and recent analyses reveal some intriguing insights into its production costs.

According to a detailed study by UBS analyst J. Yoon, the estimated cost of building the foldable iPhone is pegged at $759. Surprisingly, this is only $40 less than the expected retail price of a base iPhone 16 in the U.S. One key factor driving up these costs is Apple’s efforts to tackle the notorious crease issue that plagues existing foldable phones.

Apple is reportedly working with Korean firm Fine M-Tec to integrate metal plates with the OLED panels, which will be supplied by Samsung. This innovative approach utilizes laser drilling to help the panels withstand frequent folding without creating visible creases. Additionally, another option on the table is using thicker, chemically treated front glass, although adopting either of these techniques will inevitably raise production costs.

Tipster @Jukanlosreve shared that Apple might balance these increased costs by compromising on other components, such as lowering the specs of its A-series chip, memory, and camera. Despite these cutbacks, the foldable iPhone is projected to retail between $2,000 and $2,400, with forecasts even suggesting a price as high as $2,500.

Interestingly, even with such trade-offs, this new model could yield a gross margin of 58-64%, surpassing the iPhone 16’s margin of 47%. However, some compromises, such as the absence of Face ID, might not sit well with potential buyers.

As details continue to emerge, the anticipation builds around what could be Apple’s most ambitious and expensive smartphone yet.