Apple has entered into a supply agreement with Samsung Display for the screens used in its new iPhone Duo foldable device. According to reports, Apple will pay Samsung $250 for each display unit. This price is approximately three times higher than the cost of a standard iPhone screen, which typically runs about $70.
The decision to partner exclusively with Samsung stems from a lack of viable alternatives. LG Display currently lacks the capacity to manufacture foldable screens, while Apple has deemed the quality and reliability of displays from BOE, a supplier for Huawei, to be insufficient for its requirements.
Analysts at Citi project that Apple will sell 7.3 million units of the iPhone Duo within the first year of release. Based on the per-unit cost, this volume would result in approximately $1.8 billion in revenue for Samsung Display. The contract for these components is set to remain in effect for the next three years.
Despite the high component costs, Apple shares traded near $332 on Friday, marking a 1.9% increase. The iPhone Duo was introduced during a keynote event led by CEO John Ternus. Samsung, which competes directly with Apple in the foldable market, has noted that its own Galaxy Fold model has attracted a significant number of users switching from Apple devices.
