Just four days have passed since Apple unveiled its $999 flagship iPhone X along with two other flagships the iPhone 8 and 8 Plus. Recently an industry estimation from China has popped up that says the exclusive iPhone X’s production cost is only $412.75. Though this doesn’t necessarily mean that Apple will make profits which amount to more than double selling it. Apart from the production cost, the company also spends money after actual manufacturing, logistics, and most importantly R&D costs.
According to the estimation, it says that iPhone X’s most expensive component is the 5.8” OLED display which is made by Samsung. The cost for a unit is $80. While the Toshiba made 256GB storage costs $45, and a 3GB RAM costs $24.
In order for there to be wireless charging, Apple added back and front glass panels, each of which cost $18. The 3D sensor is also in the list of expensive additions, as it cost $25.
What else? The A11 Bionic chipset, which is made out of TSMC, cost $26 each. The modem which is from Qualcomm cost $18.
Honestly, compared with a selling price of $999, the production cost of $412.75 sounds a bit imbalanced with the retail price. But along with the production cost, there are other costs such as those involved in actual manufacturing of the device, logistics, and Apple’s own R&D. When all of that is included, then, of course, the total manufacturing cost of an iPhone X does justify a price tag of $999.
By chance, if you have forgotten, iPhone X’s pre-order starts from October 27th. And the shipping starts from November 3rd.