The iPhone X earns Apple more than the iPhone 8, despite higher production costs

It was only a matter of time before the first study appeared on the web about how much Apple actually pays to manufacture their new flagship. These estimates must always be taken with a considerable margin, as their authors often calculate only the prices for individual components, while in reality items such as development, marketing, etc. are included in the resulting costs. how much could Apple pay to produce one iPhone X. In terms of production cost, this is the most expensive phone Apple has ever produced. Even so, the company has more money from it than from the iPhone 8.

Components for the iPhone X will cost Apple $357,5 (according to the cited study). The selling price is $999, so Apple "extracts" roughly 64% of the sales value from one phone. Despite the higher costs, however, the margin is higher compared to the iPhone 8. The second model this year, which sells for $699, Apple sells with a margin of around 59%. The company declined to provide any comment on the study, as is our custom.

Official iPhone X Gallery:

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By far the most expensive part of the new flagship is its display. The 5,8″ OLED panel, along with associated components, will cost Apple $65 and 50 cents. The iPhone 8 display module costs about half that ($36). The next more expensive item on the component list is the phone's metal frame, which costs $36 (compared to $21,5 for the iPhone 8).

In the case of consumer electronics margins, it's usually the case that margins increase over time as the product goes through its life cycle. The costs of producing individual components are falling, making the production of devices more and more profitable. It is interesting to see that Apple manages to sell a completely new product with a large number of novelties at a higher margin than the lower and less equipped model in the offer. This happens, of course, thanks to the price, which starts at 1000 dollars (30 thousand crowns). Due to enormous success new phone, we can only assume how Apple will interpret it and how it will approach the pricing policy of future models. Users obviously don't have a problem with the increased prices, and Apple is making more money from it than ever before.

Source: Reuters