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The production of each iPhone costs Apple X 357 $

Edition TechInsights tried to figure out what is the high cost of the new flagship of Apple and is why the gross profit from the sale is higher than from the iPhone 8.

On sale November 3, 2017, X iPhone became the most expensive Apple smartphone ever presented. Its retail price starts at $ 999, excluding taxes. Reuters estimates the cost of producing new products in 357,50$. And therefore gross profit Apple c sale every smartphone is 64%. For comparison, retail price iPhone 8 — $ 699, with a gross profit of 59%.

If you look at the iPhone X in a disassembled state, you can find out the cost of components. The most expensive is the 5.8-inch OLED display, wholesale price which for Apple is about 65,50 dollars apiece. LCD 4.7 inch screen iPhone 8 costs 36 dollars, almost two times cheaper.

Frame stainless steel construction add to the cost $ 36. Aluminum case iPhone 8 is 21,50 dollar.

Tim cook, commenting on the high price of new products, said that the iPhone X offers users the latest and most advanced technology. The existing price is an expression of great value smartphone, and not an attempt of the manufacturer to maximize profit:

“Assigning a value, we evaluate the significance of the product. We do not set the highest price, although they could obtain it. We simply aim to measure the importance. The iPhone X is number of excellent and cutting-edge technologies. It’s a terrific product”.

It is important to note that 357,50 $ — total value of production costs. However, in order to create iPhone X it took years of research and development. In the production costs do not include cost of software, operating system and design. 357,50 $ is just the wholesale cost of components iPhone X.

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