Home / SmartPhone / The production cost of the iPhone XS Max is less than half of its advertised price

The production cost of the iPhone XS Max is less than half of its advertised price


Apple unveiled three iPhones earlier this month, iPhone XS Max, iPhone XS, and the iPhone XR beginning at $1099, $999, $749 respectively. The iPhone XS Max is Apple’s costliest iPhone thus far, with the bottom mannequin 64 GB variant beginning at $1099 and the maxed-out model iPhone XS Max 256 GB standing at a whopping $1449.

That is at present the most costly smartphone on the planet. Indubitably, Apple has positioned itself as a luxurious model within the eyes of its shoppers. Apparently, the Ontario-based agency TechInsights took a glance contained in the 256 GB variant of the iPhone XS Max and came upon its precise worth after the teardown and the outcomes had been astonishing.

Based on the agency, the manufacturing value of the iPhone XS Max is lower than half of its marketed worth. It prices Apple $443 to make the iPhone XS Max 256 Gb whereas its marketed worth is $1249, subsequently incomes a revenue of $806. It goes with out saying that the BOM (invoice of fabric) doesn’t think about, the huge quantity spent at R&D which matches into the making of the smartphone. Not like, different firms Apple manufactures most of its cellphone’s internals in-house, whereas different smartphone firms depend on QUALCOMM’s Snapdragon processors. This performs a vital issue within the firm’s unprecedented revenue margins. Based on the tear-down by TechInsights the OLED show was the most costly a part of the iPhone XS Max:

  • OLED show – $80.50
  • A12Bionic chip – $72
  • Digicam – $44

TechInsight additionally did an analogous evaluation on the now discontinued $999 iPhone X final yr. Their tear-down estimated iPhone X’s value round $375.50. Final yr’s iPhone X show was additionally the most costly half within the smartphone and value the corporate near $77.27. Contemplating this yr’s iPhone XS Max 6.5-inch display is considerably bigger whereas costing solely $80.50 in comparison with final yr’s iPhone X 5.5-inch display reveals that Apple has executed nicely to maximise its income. This was additionally attributed to the truth that Apple was capable of take away “some parts” associated to 3D contact with this yr’s iPhone XS Max show. Moreover, the inclusion of the brand new 7nm A12 chip additionally performed a component within the improve in worth.

You possibly can see a aspect by aspect production-cost comparability of the iPhone X and iPhone XS Max within the graph given under:

iPhone XS Max tear down


Regardless of the brand new price ticket of $1099, evidently the shoppers should not bothered about it, because the gross sales of iPhone XS MAX are via the roof. It seems that the iPhone XS Max has outsold the iPhone XS by over 4 occasions since its launch.

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