iPhone X reportedly costing Apple $357 to produce
According to estimates sourced from TechInsights and shared by Reuters, the iPhone X is costing Apple only $357 to produce. – The report claims Apple is paying $36 for the stainless steel chassis of the iPhone X, with the new OLED display priced at $65.50.
It’s believed the iPhone X has a gross margin of 64%, higher than the iPhone 8’s gross margin of 59%. While it may seem Apple is profiting heavily from the sale of iPhone X units, the $357 figure does not include the cost of marketing, software, transportation or research and development.
During their fourth quarter 2017 financial earnings which saw Apple earn $52.6b of revenue, Tim Cook commented on the iPhone X’s higher price point, saying the company charges for the value it provides for consumers – not in an attempt to squeeze as much as they can out of a device.
In terms of the way we price, we price to the sort of the value that we’re providing. We’re not trying to charge the highest price we could get or anything like that. We’re just trying to price it for what we’re delivering. And iPhone X has a lot of great new technologies in there that are leading the industry, and it is a fabulous product and we can’t wait for people to start getting it in their hands.