iPhone X generates a gross margin of 64 percent

Nov 7, 2017 03:22 GMT  ·  By

In a new report coming from Reuters today, it would appear that Apple's new flagship iPhone, the iPhone X, generates higher gross margin than the iPhone 8 model launched a few months ago.

What this means is that it costs Apple less to manufacturer the iPhone X despite it being the most expensive iPhone on the market, with a price tag of $999 USD in the US. According to TechInsights, a company known to tear down and estimate the components of devices, the iPhone X costs only $357.50 to make.

This results in a gross margin of about 64 percent. In comparison, the iPhone 8 Plus costs Apple about $288 to make, a bit higher than last year's iPhone 7 Plus, which costs approximately $277 to make. The gross margin generated by the iPhone 8 is 59 percent, as the devices sell at $799 for iPhone 8 Plus and $699 for iPhone 8.

iPhone X's components more expensive

According to the report from TechInsights, it would appear that many of the components found in the iPhone X are more expensive than those of iPhone 8 and iPhone 8 Plus. For example, the edge-to-edge 5.8-inch display costs $65.50, and the stainless steel chassis costs $36, so these two alone cost a little over $100 USD.

Apple is selling the iPhone X for $999 USD in the US, not to mention that its price is way higher in other parts of the world, such as Australia, where it sells for about A$1,579 AUD, which is approximately $1,218 USD. However, the device comes with more recent technologies than that of the iPhone 8 series.

For example, iPhone X uses the Super AMOLED technology instead of the older IPS LCD one found in all previous models, and the device also features a TrueDepth camera system to provide the new face scanning (Face ID) functionality, which Apple said to be composed of multiple innovative technologies.

iPhone X went on sale last week, on November 3, 2017, and it's available for purchase from various of the Apple Stores around the globe, as well as from Apple's retailers. iPhone X is Apple's 10th anniversary iPhone, and it comes with numerous innovative features that you won't find in any other iPhone.