Sources around TPK Holdings, the company that supplies the sensors for 3D Touch technology to Apple, claim that component unit prices will just from $7 to $9 currently to $18 to $22 for the iPhone 8. The Economic Daily News reports that Apple is willing to absorb the cost increase as it plans on having the so-called premium variant take up to 70 percent of its new iPhone model production capacity.
The price hike is related to the complications associated with attaching the sensors to more fragile (but more vibrant) AMOLED displays as opposed to the sturdier LCDs in the iPhone 6s and iPhone 7 generations.
Company executive Liu Shiliang said that since specifications and processing will need to differ between products, it’s natural that the prices would differ. Other executives, including the general manager and the chairman, believe that new customers will be drawn to its older technology as Apple drives the demand for its newer product.