Apple’s new iPhone X is going to cost you a pretty penny – but how much does the phone actually cost to build?
This week, Apple showed off an iPhone 8 and iPhone 8 Plus, and then immediately upstaged both new phones with the iPhone X. A physical celebration of the 10th iPhone anniversary, the iPhone X comes packed with the best hardware we’ve ever seen on an Apple smartphone. That’s why it’s commanding a lofty £999 to £1,149 price range in UK stores.
However, it’s almost certain that Apple is making a pretty neat margin on the new phone, and that’s a theory that’s corroborated by new information from Chinese industry insiders, who have estimated the total cost of raw components going into the iPhone.
According to the report, the Samsung-built Super Retina display costs $80 per unit, while Apple’s new A11 Bionic chipset is tipped to set Apple back $26 apiece – plus an extra $18 for the Qualcomm modem on board too. The 3D Face ID sensor is said to be worth $25, while the Toshiba-built NAND memory is purported to price in at $45.
All-in-all, the total component cost of the iPhone X is estimated to be $412.75, which is far less than the $999 retail price of the 64GB model. That means Apple is saving nearly 60% on the iPhone X.
However, it’s worth remembering that components alone do not make a successful smartphone. Much of the revenue generated from sales will be used to pay for Apple salaries, marketing and advertising materials, retail overheads, and so on. As such, the actual profit margins are likely to be far slimmer.
We should also remember that these are only estimates, and so they could be wildly incorrect – so take these figures with due caution.
The iPhone X was announced by Apple CEO Tim Cook on September 12, 2017, and is currently slated for release on November 3, 2017. The phone boasts a number of new features, including 3D facial recognition, an edge-to-edge OLED display, and animated emoji.
Related: Samsung Galaxy S9
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