iPhone X Costs Around $357 to Make but Carries Higher Profit as Opposed to iPhone 8
The $999 priced iPhone X has received a boatload of attention, mainly for its price tag and the abundant number of features it comes shipped with. Apple believes that it has a right to charge you this much because according to the latest info from data research firm, the iPhone X has expensive components that are driving up that retail price.
iPhone X Sells for $999 and Features a Gross Margin of 64 Percent - Only Slightly Higher Than iPhone 8’s Gross Margin
According to a report from TechInsights, the entry-level iPhone X costs Apple around $357.50 to make, but Apple sells it at a downright $999 price tag. In comparison, the gross margin generated by this phone is higher than the gross margin of the iPhone 8 but that is because the latter has a price of $699 and a gross margin of 59 percent. For a price difference of $300, the gross margin difference is just 5 percent.
If you take a look at the parts that make the iPhone X, it is these very components that have resulted in this price increase. Let us break it down for you:
- iPhone X’s OLED display cost: $65.50 ($36 for the 4.7-inch LCD display on the iPhone 8)
- Stainless steel chassis cost: $36 ($21.50 for the aluminum housing used in the iPhone 8)
While these are just the costs of the parts that make up the iPhone X, there are other variables that come into play as well. We are confident that a complete breakdown of those costs will be provided in the future, so we will update you accordingly.
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News Source: Reuters