The Korean securities firm, KGI, sent a report to its clients that explains why the anniversary iPhone will be so expensive. The latest rumors suggest a $999 price tag for the 128GB iPhone 8, $1,099 tag fron the 256GB iPhone 8, while the 512GB internal storage iPhone 8 will be priced at $1,199.
The prices haven’t been yet confirmed and other analysts in the US claim that the rumored prices are inflated, and the final prices will be lower. Anyway, KGI Securities explains to their clients that iPhone 8 will be more expensive because of the OLED panels produced by Samsung.
KGI says Apple pays $120 to $130 for each OLED unit, thus increasing the retail price for iPhone 8. Yeah, OLED panels are much more expensive than LCDs, but iPhone 8 will have a load of new features in comparison with its predecessors, like wireless charging, an advanced AR system and 3D face recognition technology. So there are more reasons for Apple to charge more, not just the for the OLED.
About the face recognition features, KGI says it became the main authentication features because of the OLED panels from Samsung too. Why? KGI claims that Apple ditched the in-display fingerprint reader, because the OLED layer prevents the fingerprint reader to be accurate. There are plenty of problems with the OLED from KGI’s perspective, yet, the same report notes Apple will be buying OLED panels from Samsung in 2018, too.
If there are so many issues, I would ask KGI: why doesn’t Apple brake the contract with Samsung? They may say it’s because Samsung is the biggest OLED panel manufacturer and the only one with the required yield rates and capable of meeting Apple’s quality standards. Yes, gentlemen, Apple has some standards and most certainly Apple will brake a contract with no sweat is a component would compromise their iPhone. If OLED weren’t liked by Apple, they wouldn’t go for OLEDs in 2018 too. They could very well go back to LCD or choose another manufacturer. LG just expanded their OLED production capacity. In 2018 Sharp will start making OLEDs too, so why stick to Samsung?
The last piece of information that makes me raise my eyebrows, is the fact that KGI says Apple will equip all three iPhones with OLED panels in 2018. Why three and why all OLED panels? We can take in consideration that Apple will launch a new iPhone SE next year, so that’s why there will be three. But if Apple equips SE with OLED panels the prices will most definitely jump over $400, making it more expansive, thus producing iPhone SE becomes unsustainable and it loses its purpose. iPhone SE is supposed to be the cheaper alternative for iPhone fans.
It looks to me that KGI’s report was made on the knees.