Why Apple’s iPhone 8 Will Be So Expensive

iPhones have always been expensive, but they have never been this expensive…

Following reports from Goldman Sachs, Nikkei, Fast Company and KGI Securities’ famed Apple AAPL +0.65% analyst Ming-Chi Kuo that Apple will start iPhone 8 pricing from $1,000 is more evidence to explain why.

In short: no iPhone has ever been this expensive to build.

2017 iPhone concept

2017 iPhone concept

Shedding new light on this is the Economic Daily News (via DigiTimes). It reveals longtime Apple component supplier TPK Holdings has quoted 2-2.5x the price for integrating 3D Touch into the 10th anniversary iPhone’s display – and Apple has accepted. This works out as $18-22 vs $7-9 in previous generations.

Why? The move to OLED: “The solution directly bonds 3D Touch sensors on LTPS TFT-LCD display panels of the iPhone, but 3D Touch solution for OLED panels entails bonding of a glass cover on the front and back side of an OLED panel each to reinforce the fragile OLED panel,” claims the Economic Daily Times.

What’s more, this is just the latest in a series of component price rises.

Goldman Sachs says the OLED itself will add $35 to the overall manufacturing cost, new “3D sensing” technology (expected to be in the camera) adds an additional $20 and upgraded memory will be $16-29 more expensive that last year.

iPhone 8 concept - will the move to OLED have serious price implications?

iPhone 8 concept – will the move to OLED have serious price implications?