iPhone X Reportedly Costs $357.50 To Make, Has A Higher Profit Margin

The iPhone X is Apple’s most expensive iPhone to date, with a base price of $999, and going over the $1,000 mark if you opt for the 256GB model. There are a variety of reasons why the iPhone X costs so much, which you can attribute to demand, new features, and so on, but a more simple reason could be that it just costs more to make.

According to TechInsights (via Reuters), the company has estimated that based on the components of the iPhone X that it apparently costs $357.50 to make, and with a base price of $999, it means that the iPhone X gives Apple a profit margin of 64%. This is versus the iPhone 8 which is said to have a gross profit margin of 59%.

We have seen other estimates in the past regarding the cost of iPhone components. For example a couple of months ago it was estimated that the iPhone 8 has a material cost of $247.51, which is slightly more than last year’s iPhone 7 which is said to have cost around $220. However we should point out that these estimates might not be 100% correct.

This is because given that Apple buys in bulk, and depending on their relationship with their supplier, the cost of the components could be less than what these companies are estimating. Plus there are other costs involved, like marketing, R&D, and so on, all of which are factored into the final price, so perhaps don’t take these numbers as gospel for now. In the meantime if you reckon that the iPhone X is too expensive, perhaps you could follow Tim Cook’s suggestion of maybe cutting back on your expensive coffees.

Tyler Lee
Categories: Apple, Cellphones
Tags: iPhone X