While theis expensive to buy, it’s also expensive to make — but maybe not as expensive as you’d think.
The iPhone X’s parts add up to about US$357.50, according to TechInsights (via Reuters).
To arrive at this estimate, TechInsights tore down an iPhone X and tallied up component costs. Keep in mind that these are just estimates, not the exact figure Apple pays per phone. Apple declined to comment.
Since the iPhone X starts at US$999, this estimate puts Apple’s profit at a gross margin of 64 percent. The— which costs US$699 to buy — reaps in a gross margin of 59 percent, according to the report. This would mean that Apple makes more money off the iPhone X than the cheaper iPhone 8.
New iPhone X hardware like the big OLED display, wireless charging and TrueDepth camera system gives the phone much of its appeal, but it also adds to its price. For example, the report estimates that the 5.8-inch OLED display panel and its associated parts cost about US$65.50, which is almost double what the iPhone 8’s $36 LCD display runs.
This is also interesting: TechInsights estimates that the costs US$367.50. This would make the 256GB iPhone 8 Plus more expensive to make than the 64GB iPhone X, despite the fact that Apple charges more money for the iPhone X.
Apple CEO Tim Cookthat the iPhone X’s price is based on the value that you get from the phone. Still, that’s some steep markup.
Do you think the price is justified?