Apple's first foldable phone iPhone Duo has been released, and in addition to its price of 2369 euros, the market's attention has also turned to its supply chain of core components. Multiple reports, citing leaks from Weibo, state that the foldable screen for this model is exclusively supplied by Samsung Display, and Apple currently has no alternative for this critical component.
Samsung may provide exclusive supply for three years.
The report states that Samsung Display has secured orders for iPhone and Duo foldable screen units and may maintain an exclusive supply position over the next three years. This arrangement is not common for Apple, which typically relies on multiple suppliers for similar components in order to reduce costs and diversify risks.
The report mentions that LG Display currently does not possess the mass production capabilities to meet Apple's requirements. Although BOE has already supplied foldable screens to other brands, it is said that they have not passed Apple's standards for quality and reliability. In other words, Apple does not have many suppliers to choose from for its first-generation foldable screen, iPhone.
The cost of a single panel is approximately $250.
Supply chain sources indicate that Samsung charges Apple approximately $250 per foldable screen panel. In contrast, the cost of a regular iPhone screen is around $70. The price of foldable screens is more than three times that of regular screens, making them one of the most costly components in the overall device cost.
Calculated in this way, a single foldable screen already accounts for over 10% of the iPhone Duo retail price. This also explains why the pricing of this model is significantly higher than that of Apple's current mainline smartphone products. The foldable structure, flexible materials, and durable design are still the main reasons for the high cost of foldable screens at present.
Apple enters the foldable screen market
iPhone Duo is regarded as Apple's first official entry into the foldable screen smartphone market. Prior to this, Samsung had already taken a leading position in this category with its Galaxy Z Fold series. Apple's new release is also positioned more towards the high-end market, rather than being aimed at a mass-market audience.
Citi estimates that in the first year of iPhone Duo's listing, sales will be around 7.3 million units. Assuming each panel is valued at $250, Samsung Display could generate nearly $1.8 billion in revenue from this single business alone. For Samsung, this is not only an order from the supply chain but also signifies that its leading capabilities in foldable screen manufacturing continue to be translated into actual profits.
From a competitive perspective, while Apple launches new foldable screen phones, it still needs to purchase key components from Samsung, which also sells foldable screen phones. This situation is unlikely to change in the short term. In the coming years, whether Apple can introduce new foldable screen suppliers will become an important factor in its ability to control costs and reduce supply dependence.
