Apple’s much-anticipated foldable iPhone — often dubbed the iPhone Fold — appears to be closer to become a reality than ever. But more importantly, new reports suggest Apple has discovered a key cost-saving strategy for one of the device’s most challenging and expensive components: the hinge.
Why the Hinge Matters
In a foldable phone, the hinge is arguably one of the most critical and expensive parts. It needs to be durable, precise, and able to survive tens of thousands (or more) of open/close cycles while maintaining smooth movement. As such, the hinge often becomes a price bottleneck: complex engineering, tight tolerances, and exotic materials contribute to high costs.
Until now, market expectations placed the hinge cost in the range of USD 100–120 per unit (or even higher), adding substantially to the device’s bill of materials.
What’s Changed: Design & Supply Chain Optimizations
According to analyst Ming-Chi Kuo and industry reports:
- The hinge’s average selling price (ASP) when mass production begins is projected to fall to USD 70–80 — roughly 20% to 40% less than earlier expectations.
- Crucially, this cost reduction is not because Apple is using cheaper materials or reducing quality. Instead, the improvement comes from “assembly design optimization” — meaning Apple and its suppliers are streamlining how the hinge is built, assembled, and integrated.
- A new joint venture between Foxconn (Apple’s long-time assembler) and Taiwanese hinge maker Shin Zu Shing (SZS) is expected to handle about 65% of the hinge orders, with Amphenol responsible for the remaining 35%.
- In the longer term, Apple may bring in Luxshare-ICT as an additional hinge supplier (potentially by 2027), which could further drive down costs through competition.
Implications for Apple and Consumers
This hinge optimization has several possible effects:
- Better Margins or Lower Pricing
The cost saving gives Apple room to either maintain robust profit margins or pass some savings to consumers (which could make the iPhone Fold more competitively priced). - Improved Viability for Mass Production
By reducing a key cost component, Apple lowers the financial and logistical risk associated with producing a foldable model — especially when entering a new category. - Supply Chain Control & Integration
Through the Foxconn–SZS venture, Apple gains more control over hinge production and ensures tighter integration between assembly and component manufacturing. This can improve yield, quality, and responsiveness to scale. - Competitive Positioning
A more affordable foldable could let Apple position strongly against established foldables (Samsung, others). If costs are contained, Apple might avoid pricing its foldable too far above rivals. Some projections already suggest the iPhone Fold could be priced under USD 2,000 (though that is speculative).
What Remains to Be Seen
While the hinge cost drop is a significant development, several uncertainties remain:
- Other cost components — the foldable display, flexible layers, support structures, and durability testing still carry high costs.
- Final retail pricing — Apple may absorb savings or adjust elsewhere; it might not fully reflect reduced hinge cost.
- Reliability & longevity — even with cost cuts, the hinge must meet Apple’s strict durability and performance standards.
- Launch timing & scale — rumors suggest a 2026 release, but delays are always possible in novel hardware.
- Supply chain expansion — whether more hinge suppliers (e.g. Luxshare) join sooner than expected will influence cost dynamics further.
In short: Apple’s strategy to cut costs centers on engineering smarter — not cheaper. By refining the assembly and production process of one of the most difficult parts (the hinge), Apple may pave the way for a foldable iPhone that is more feasible to manufacture and more competitive in price. But whether consumers will see significantly lower prices — or simply better margins — depends on how the rest of the hardware costs pan out.
