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Here’s What a Foxconn Exec Just Said About the iPhone 8 Price Tag

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How much will the Apple Inc. (NASDAQ:AAPL) iPhone 8 cost? A lot more than the other iPhone models. Leaks and rumors have indicated that the phone would bring many new technologies along with a new design. These new features are expected to significantly increase the iPhone 8 price tag.

Here’s What a Foxconn Exec Just Said About the iPhone 8 Price Tag
Source: Samsung

A Foxconn VP said on Chinese social media that the iPhone 8 would not be cheap. Well, no iPhone is “cheap,” but the upcoming model will cost much more than other models.

Low OLED yield rates to push up the iPhone 8 price tag

Foxconn vice-president Luo Zhongsheng said in a post on Chinese microblogging site Weibo that the 10th anniversary iPhone’s special design has led to a huge decline in the yield rates of OLED displays. Various leaks, including the HomePod firmware, have confirmed that the iPhone 8 would have an all-front display with no bezels. There will be a small cutout near the top to accommodate the ear speaker, front camera, and other sensors.

Zhongsheng said the special panel has brought down the OLED yield rates to 60% (or 40% failure rate). The Foxconn executive has since deleted the post, but not before MyDrivers had taken a photo of it. Zhongsheng also confirmed that Samsung Electronic (OTCMKTS:SSNLF) was producing OLED panels for the iPhone 8. Given the high manufacturing costs, the 10th anniversary iPhone will not be sold cheaply.

How much will the iPhone 8 cost?

Foxconn is Apple’s biggest manufacturing partner. It is too early to say how much the iPhone 8 would cost. Many speculate that it will be the first iPhone to cost more than $1000. Others say the iPhone 8 price tag could go as high as $1400 for the highest storage variant. The current iPhone 7 Plus already sells at $969 for the 256GB storage option.

Though all new features and components will add to the iPhone 8 price, there are certain parts that will be far more expensive than the others. For example, DigiTimes has learned from its sources that TPK Holdings would charge $18-$22 per unit to integrate 3D Touch into the iPhone 8’s OLED display. That’s more than double the $7-$9 it currently charges per unit for the iPhone 7 and 7 Plus. The increase in cost is attributed to a more complex technology.

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