A foldable iPhone? Apple doesn’t make any money with that!

Samsung is establishing its absolute dominance in the foldable smartphone market. Many wonder when Apple will come up with an answer. There have been some rumors about a foldable iPhone, but apparently they haven’t been much. OMT moderator Night shares his view of the much-discussed smartphone.

In our Weekend Poll last week we already asked you the question whether you like a foldable iPhone. A third of our readers agree. These readers will probably be disappointed, as I don’t think this will happen for the foreseeable future. Why not? I’ll explain that to you.

Apple would rather wait with a foldable iPhone

Industry insiders believe that Apple is not yet betting on foldable iPhones. Something that has to do with too small margins. Foldable panels are more expensive than conventional OLED panels. Apple would rather maintain its profit margins than have to compromise just to release a foldable phone.

There have been many estimates of Apple’s profit margins on iPhones. While the numbers vary, they are all above 50%. In simple terms, this means that if it costs $10 to make an iPhone, Apple will sell it for at least $15.

Profit margins are important to any business, but to Apple in particular. That’s also why you don’t normally see a discount on iPhone models in Apple’s online store.

Retailers can cut their own margins to sell discounted iPhones, but Apple doesn’t do that when selling direct to consumers. This does not apply to Galaxy devices. Samsung strives for a balance between volume and margins. The company is therefore always prepared to immediately sprinkle with discounts.

No foldable iPhone due to lack of supply companies?

Ross Young also tells us that Apple’s decision not to bet on foldable devices yet is due to the lack of a developed supply chain. Not many display manufacturers can supply foldable panels on a large scale. Samsung Display is one of them, but the yields may not be high enough to support the high demand from both Samsung and other manufacturers.

With a mature supply chain, Apple could choose from more suppliers. More competition will also drive down panel prices, giving the company more breathing room for profit margins.

So Apple may only see this as a purely business decision. It doesn’t have the kind of vertical integration that Samsung Electronics has with Samsung Display. Apple clearly prefers to wait for market dynamics to shift in its favor before considering launching a foldable iPhone. How long that can take is a completely different matter. It seems clear to me that this will not be the case for the time being.