According to Kuo, the average selling price for the hinge of the Apple iPhone Fold is projected to fall to $70-$80, which is approximately 20% to 35% lower than previous market estimates of $100-$120. This decrease in hinge costs might trickle down to the end consumer, and Apple could eventually offer a more competitively priced iPhone Fold, at the same time keep acceptable production margins.
As reported by Kuo, Foxconn and Shin Zu Shing’s joint venture has approximately 65% of Apple’s total hinge orders, with Foxconn possessing a slightly larger share in the venture and directly engaging in hinge manufacturing. Kuo noted that the decrease in hinge costs primarily stems from design improvements and Foxconn’s efficiencies in large-scale manufacturing.
With the average selling price of hinges dropping, Apple gains the most from reduced production expenses. This may bode well for buyers as well, if Apple decides to pass this gain to end users.
