iPhone XS Max costs Apple $443 to make according to reports
The iPhone XS Max costs Apple approximately $443 to make according to reports from TechInsights who claim that following a teardown of the new hardware, the iPhone XS Max is only around $50 more expensive than the estimated $395.44 component cost of the 64GB iPhone X.
Judging its figures based on the 256GB iPhone XS Max, TechInsights’ component cost breakdown suggests the single most expensive part of the new device is the OLED display, costing Apple $80.50 per-iPhone, with the new A12 Bionic chip and modems the second most expensive part of the device, at $72.
According to TechInsights’, Apple was able to save around $10 per-device by removing “some components” related to 3D Touch from the iPhone XS Max display.
The relatively small increase in cost despite the larger screen size was because Apple appeared to have removed some components related to its so-called 3D Touch system, which makes apps respond differently depending on how hard users press the screen. – “All told, what they took out adds up to about $10, so this $80 estimate would have been about $90,” Al Cowsky, who oversees cost analysis at TechInsights, told Reuters in an interview. “They had a trade-off in cost.”
The camera system on the iPhone XS Max reportedly costs Apple $44 per-iPhone, with storage priced $20 higher at $64. The figures included in the report (and detailed below) don’t include Apple’s research and development expenses, marketing costs and software development fees, but it is safe to say that by selling the 256GB iPhone XS Max at $1,249.00, Apple has left themselves plenty of room to make a nice profit margin on the iPhone XS and iPhone XS Max.