If the reports are true, Apple’s upcoming iPhone 8 will not come cheap and is said to be priced anywhere between $999 to $1,199. So what’s the reason for the expensive price? Inflation? Apple getting greedy? Investors demanding better profit margins? Turns out it could be due to a very simple reason: Samsung.

In a report from KGI Securities, it seems that the main reason why the iPhone 8 could be expensive is due to Samsung’s apparent monopoly on OLED displays. Given that Samsung does seem to control the bulk of OLED components, they are said to be charging a premium for them, which in turn means that Apple also needs to increase the price of their phones, since we doubt that Apple would willingly absorb the costs.

KGI has estimated that each OLED costs $120-$130 per unit versus the cost of the LCD panels Apple uses on previous iPhones, which is said to be anywhere between $45-$55. Note that Apple’s CEO Tim Cook has stated in the past that the cost of components published out there are nowhere close to being accurate, so do take this with a grain of salt for now.

That being said, we have heard that Apple is looking to change things as far as OLED suppliers are concerned and are looking to have LG supply them with the necessary components for 2019, which hopefully means cheaper components, although whether this means a drop in price remains to be seen.

Filed in Apple >Cellphones >Rumors. Read more about iPhone, iphone 8 and Samsung.

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