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Tuesday, November 07, 2017
Apple's iPhone Costs $360 to Make, Retails for $999


Apple's new flagship iPhone X costs $357.50 to make and sells for $999, giving it a gross margin of 64 percent, according to TechInsights.

iHS' TechInsights analyzed the cost of the parts inside the new iPhone X and estimated that the new iPhone X makes Apple more money per phone than its iPhone 8 model, since the iPhone X's flashier parts cost Apple 25 percent more than the iPhone 8, but that it retailed 43 percent higher.

The iPhone 8 sells for $699 and has a gross margin of 59 percent.

The iPhone X went on sale on Friday, to apparently strong demand, while the iPhone 8 is an update on last year's iPhone 7, which itself was similar to the iPhone 6 released in 2014.

The most expensive component in the iPhone X is its 5.8-inch edge-to-edge Super AMOLED display and associated parts, which cost $65.50, compared with $36 for the iPhone 8's 4.7-inch LCD display, the analysis found. It is estimated that the cost of the display module, which includes the cover glass, AMOLED panel and Force Touch sensor, is $110.

Another pricey choice was the stainless steel chassis of the iPhone X, which cost $36 versus $21.50 for the aluminum housing of the iPhone 8.

Apple declined to comment on TechInsights' analysis.

Apple has been able to charge a premium price for its latest devices and also maintain that price even when selling devices through third parties like telecom carriers.



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