iPhone X Didn’t Cost Apple More Than $400 To Make

iphone x cost

iPhone X is definitely one of the most popular and coveted smartphones of the year. The price, starting at $999, is a challenge for some users as well as a frustrating obstacle for the others. Either way, Apple’s latest iPhone is anything but budget-friendly. So, how much does it cost the company to produce a unit? Not even half of the retail price #mobilemagic

As it turns out,  the cheapest iPhone X (the one with 64GB) doesn’t cost more than $357.50 to make. But by selling it at more than double the cost, Apple obtains a gross margin of 64%, while on iPhone 8 it get a margin of 59%. Why the 5% difference?

Well, the special edition iPhone carries two different hardware features. First of all, it comes with an OLED panel which Apple pays $65.50 for, while an LCD one is just $36. Secondly, the stainless steel frame is not as cheap as you might think. If an aluminum one – as the piece for iPhone 8 is – costs $21.50, this one is $36.

Keeping in mind all of that, some customers might still find the price of the iPhone… outrageous. Tim Cook’s explanation for those is pretty straightforward: they charge for value. An iPhone is not just piece of equipment put together; every unit carries premium technologies, and, in the case of iPhone X, even ones that are “leading the industry”. Besides, these costs don’t take into account the years of research and development Apple teams have gone through to get to this point, to remain at the top.

Think of it like this: you’re not just paying for an object, but for the years of experience, hard work and creativity of every person who contributes to it, the patented ideas and technologies that come with it.



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