Leaks Reveal Why Apple iPhone 8 Has A Surprising Cost
For you Apple fans out there, the news of the iPhone 8’s insane cost has probably felt like a punch in the guts. The launch of the iPhone 8 will have Apple lovers already trying to figure out which model to buy, since there will be three to choose from. Two of the models will likely be called the iPhone 7S and 7S Plus will have a majority of the same specs that the current iPhone 7 and 7 Plus have: such as the same design. However, one of them, the iPhone X or iPhone Pro (which has been termed the iPhone 8), will feature a crazy new design that completely removes the home button for gesture controls and facial recognition. This model, the iPhone 8, has a price tag of around $1000 – just for the phone.
Why So High?
So, what in the hell is making the cost of this newest Apple smartphone so high? Well, you can actually blame Samsung. Apple’s main rival, and the company that has been leaving others behind in the dust with new innovations lately, has Apple over a tight barrel. Samsung is the only supplier of the OLED panels that the iPhone 8 will use. Therefore, the 5.8 inch OLED display has to be ordered from Samsung and is costing Applie around $130 per screen. (This means that if you do shell out the grand for the iPhone 8, you’ll have Samsung parts in your beloved Apple.)
If you compare the cost of the OLED displays for the iPhone 8 with the LCD displays in the iPhone 7’s, you can easily see where the price is getting screwy. The LCD in the iPhone 7’s only costs about $50 each, meaning that it is about 1⁄3 the price of the OLED displays.
So Why Use OLED Displays Then?
I’m sure that you’re asking why Apple doesn’t just use a different display then. Why buy those crazy expensive ones from Samsung – their main rival? Well, if you are trying to stay on the cutting edge of technology when producing a new smartphone, you’re going to want to at least rival the top contender out there, if not bypass them completely. Unfortunately, Apple hasn’t been trying to keep up too much with the innovations that Samsung has been slinging out, so it has to purchase these parts for their new phones.
Apple Is Trying To Fix It
Hopefully, it won’t be too little too late on Apple’s part, but they are trying to find a way to bring the price of the iPhone 8 down. They have just invested over $2 billion in LG to build a new manufacturing plant that will produce the OLED screens. The problem is that plant won’t be ready to kick out screens until sometime in early to mid-2018. For now, Samsung has Apple in a place it doesn’t want to be – dependent on their rival for parts.
It Isn’t Just Samsung’s Fault However
Ok, so let’s slow down a second here. The leaks that came out this past week reveal that it’s not just Samsung that is the problem with the price of the iPhone 8. Some of the problems are coming from the new design that takes a pretty far detour from the iPhone 7 (even the two new iPhone 7 models coming out soon). Apple has decided that it will remove one aspect that iPhone lovers have come to depend on: the Touch ID sensor. Instead, the iPhone 8 will have only Face ID. Other changes in the iPhone 8 that are driving the cost up include wireless and fast charging, which increase the difficulty of the phone’s production.
Of course, there are too many other smartphone companies out there that have fast charging, wireless charging, facial recognition software and so on. So, why hasn’t Apple already caught up to these features? Hopefully, the lesson that they are learning now with the OLED displays and trying to play catch up with its rivals will mean that Apple will get back on track with developing the new technology that it needs to reach that top spot once again.