Apple isn’t losing any money on the iPhone X. Despite having an entirely new design and exclusive components, the $999 device is the company’s real money-maker.
The iPhone X is expensive to make, but Apple still earns an impressive amount of money on every unit sold. The same goes for the iPhone 8 that was released in September. It’s just impressive to see the iPhone X rise above the iPhone 8 while being more costly. Still, both of Apple’s latest mobile devices are generating profit margins above 50 percent, according to TechInsights.
An iPhone X with 64GB of internal storage costs Apple around $357.50 and then gets turned around to consumers for $999. That’s a 64 percent profit margin. Meanwhile, the iPhone 8 costs $287 to make and sells for $699. The profit margin on Apple’s secondary iPhone drops to 59 percent.
These estimates from TechInsights are based on calculations during a teardown and do not include research and development, manufacturing, and marketing expenses. So, while the numbers are interesting to observe, they may not be completely accurate. Apple spends a massive amount of money on designing its products and advertising them around the world.
Unsurprisingly it’s the body and display that force the the iPhone X to be more expensive to make than the iPhone 8. Apple’s stainless steel body for the iPhone X costs $36, and the aluminum body for the iPhone 8 costs $21.50. For the display, the iPhone X’s OLED panel from Samsung costs a bit more than $65 while the smaller LCD panel on the iPhone 8 is just $36. The duo does, however, share a few things like the A11 Bionic processor and some camera components.
Look no further than the price to understand why Apple’s getting a better profit margin on the iPhone X. The company knew consumers would flock to the ‘revolutionary’ model, so it raised the price yet remained attractive enough for the masses to buy.
The Galaxy S20 Ultra's Space Zoom camera is amazing and a bit creepy
The Galaxy S20 Ultra supports up to 100X zoom, which Samsung calls Space Zoom, but is it any good? Can a phone really product usable photos at 100x zoom? We've got our Galaxy S20 Ultra already so join us to find out!
Win an iPhone, iPad and Apple Watch with the Reader's Choice giveaway!
What's the best phone of 2019? Is it the iPhone 11 Pro, Pixel 4 or OnePlus 7T? What about the best laptop, games console, tablet and more? Vote NOW in the Reader's Choice awards and win BIG in time for the holidays!
Here are the best products from IFA 2019!
Here are the products announced at IFA 2019 that were worthy of our Best of IFA 2019 awards. Also featuring MrMobile's single best product at the show!
Make your foliage a feature with the best plant stands
Really show off your home's foliage with a plant stand that makes your greenery a statement, rather than just background noise. We've found a dozen desirable plant stand solutions to suit all types of spaces, all styles of decor and all kinds of plants.