Looking at the iPhone X sky-high price tag and the kidney jokes, one is bound to wonder, “How much does Apple earn with this thing?” Some Chinese insiders are aware and they have put the info up for the world to see.
According to the report, the production cost of the phone stands at $412.75. The figure includes all the components put in a single unit including the most expensive display panel. Unsurprisingly, the insiders say that Apple pays $80 for every display panel it puts on the iPhone X. Now, earlier reports have revealed an even steeper price tag of $120 per panel as Samsung cashes in on the high demand of its curved OLED displays. Below is a comparison of production cost with other flagships.
|Phone model||Estimated cost of production||Starting MSRP for base model|
|Samsung Galaxy S8||$307.50||~$730|
Other important hardware like the A11 bionic chip cost $26. Also, the Face ID sensor sets Apple back by $25 per unit and the storage made by Toshiba is worth $45 (for $256 GB). the 3 GB RAM module comes at a price of $24 and the front glass panel’s price tag is $18.
To round things up, $413 still leaves a lot of money on the table for Apple. It is at least a 50% margin, probably even more. However, the cost sheet only shows production costs. Other expenses like logistics, cost of software production and the like are not factored in here. That should close the gap of margin considerably. If you want to know about pre-order dates and stuff, click here.