Apple iPhone X making cost estimated to be less than half of selling price
Apple’s iPhone X is supposed to represent the future of technology. We all know that the iPhone X is the most expensive one that has come from Apple’s stable. But do you know how much exactly is Apple paying to produce this?
According to a report in Reuters, the iPhone X’s production cost is a bit higher than the iPhone 8, but the gross margin is much bigger. The Reuters report based on TechInsights, the new iPhone costs just $357.50 (approx Rs 25,000) for Apple to manufacture. The 10th anniversary iPhone has a starting price of $999, which essentially means that there is a margin of 64 percent on the device. Comparatively, Apple has a gross margin of 59 percent on the iPhone 8, whose starting price is $699.
The iPhone X went on pre-order started. Estimated ship times are already 5-6 weeks away. Given the colossal cost of repairing the iPhone X, ET strongly recommends anyone considering one of these devices buy a very good case. $549 to repair a cracked back (and the back does not count as a screen) is just absurd.
Meanwhile, Al Cowsky, Costing Analyst, TechInsights says, “Apple is unique in the electronics industry for its ability to charge a premium price for its latest devices and for its ability to maintain that price even when selling devices through third parties like telecom carriers.”