The iPhone X is the most expensive smartphone Apple has ever produced. But how much does the device actually cost to make. Not as much as you might think it turns out.
The iPhone X starts at £999 for the cheapest model and can run you up to £1348 if you opt for the larger storage size and Apple Care extended warranty. That’s a LOT of money for a smartphone of any description.
The iPhone X’s striking design doesn’t bring too many new features to the table. Facial recognition and emojis that match your face aside, the iPhone X was still seen as behind Samsung and other Android devices in many areas.
That aside, the iPhone X still sold out on release and back orders are just beginning to be fulfilled. As with most other Apple devices before it, the hype matched customer demand and the device was hugely sought after.
A report from TechInsights suggested that the parts in the handsets totalled to an amount of just £273! With the price of the iPhone X starting at £999 – that’s a massive 64% profit margin, which is huge and obviously making Apple a lot of money.
These cost’s obviously don’t include research and development expenses though and Face ID has obviously had quite a bit of time, and money, spent on getting it into the handset.
The figures also don’t show the distributors and mobile networks profit share for selling the handsets. But again, some Networks have been making especially large profits offering the iPhone X on ridiculously expensive contracts.
Best estimates but the profit margin on the iPhone X to Apple at around 40% for the hardware. Going by numbers of units sold worldwide and the cost of the device, the iPhone X has definitely made the company a lot of money. The iPhone X also added to the value of Apple’s share price, making it even more money!
Apple’s ‘constant margin’ strategy is what makes the device so expensive. Rather than set the price at a competitive level in line with other smartphones, Apple aims to keep their profits at a similar level from generation to generation, which increases the retail price on a yearly basis, this increasing the amount of profit the company makes. Good for business, bad for customers.
Is this iPhone X worth the money? Most diehard Apple fans will say yes, but what do you think? Let us know in the comments section.