- KGI Securities analyst Ming-Chi Kuo says Apple is charging a premium for its new OLED displays.
- Apple typically spends less on LCD panels.
- The OLED screens are much nicer, but cost more, and they reportedly will be supplied by rival Samsung.
Samsung may be to blame if the iPhone 8 costs more than $1,000.
According to MacRumors, KGI Securities analyst Ming-Chi Kuo — a widely followed and historically accurate Apple analyst — said this week that Samsung is likely charging Apple up to $130 per display used in each iPhone 8 unit.
Samsung is rumored to be the primary supplier of new OLED screens that are brighter, more colorful and more efficient than the LCD display Apple typically uses.
IHS, a firm that typically breaks down the bill of materials for each iPhone, said last year that the display in the iPhone 7 cost Apple about $39 each.
According to those prices, Samsung's screens are adding about a $100 premium to the bill of materials. This might explain why reports and analysts are suggesting that Apple's new iPhone will cost anywhere from $1,000 to $1,400, depending on the model.
The price shouldn't worry most consumers, though.
Wireless carriers are adept at hiding sky-high prices in monthly device installment plans that are easier to swallow. Apple also finances its phones, allowing customers to pay off the full cost of a device over a year or more.
CNBC reached out to Apple for comment but a spokesperson was not immediately available.