Do you know why Apple is making so much profit?
After every iPhone launch, people try to find how much the phone costs. We’ll show you a list of components and their cost showing how much they cost to be built from scratch. For this year we’re picking up the iPhone XS Max as it is the most expensive iPhone ever.
According to TechInsights, the 256 GB iPhone costs around $443 to be built. Comparing this cost price with the market, which is $1,249, it is a whopping $806 profit in Apple’s pocket.
Apple iPhone XS Max vs iPhone X Cost:
Last year’s 64 GB iPhone X cost $395 which people happily purchased at $ 999. Here’s the comparison of iPhone XS Max and last year’s iPhone X:
|Component||Apple iPhone XS Max A1912||Apple iPhone X A1091|
|Processor / Modems||72.00||66.22|
|Connectivity and Sensors||18.00||17.11|
|Mixed Signal / RF||23.00||23.31|
|Power Management / Audio||14.50||14.16|
|Mechanicals / Housing||58.00||45.71|
|Test / Assembly / Supporting Material||24.50||24.55|
Via Tech Insights
Comparing both phones, we can see that they’re very similar.
iPhone XS Max
As expected, most of the costs come from the OLED display Apple used in the two iPhones which cost just over $ 90.50 whereas last year it was $ 77.27. It is because XS Max has a bigger screen than iPhone X. By removing some of the components associated with 3D Touch, Apple has saved $ 10 which reduces its overall cost.
iPhone XS Max has a larger, heavier and stronger housings than the iPhone X, and the internal frame carries more process costs.
The processor/modem unit costs $72 which is $6 more than last year. The A12 Bionic is the first mobile processor to be built on 7nm, so the increase was expected.
Also read: iPhone XS and XS Max in-depth review
Storage cost is around $64. Here is where Apple makes a bulk of increasing profits because the cost isn’t much and Apple charges you a higher price for upgrading storage. Memories all around the world are getting cheap, but for Apple, the situation is otherwise. Cameras in Apple iPhone XS Max costs around $44.
The RF antennas are slightly cheaper than last year. Now it costs $23.00 than last year’s $23.31.
In baseband, Apple has used Intel PMB9955. It is a fifth-generation LTE modem which supports CDMA as well. It is the first of its kind to be fabbed using Intel’s own 14 nm process.
The above cost doesn’t include the manufacturing cost, after-sales support, and supply chain.
Still, the hefty profit Apple makes is still reasonable with the phone starting at $1099 for the base model and $1249 for the 256 GB variant.
Are you still going to buy iPhone XS Max? Let us know what you think in the comments section below!