Chart shows how the costs of making an iPhone evolved

Nov 18, 2017 21:14 GMT  ·  By

The iPhone X is the most expensive iPhone model to date, as pricing starts at $999 for the 64GB version and jumps to $1,149 for the 256GB version.

A recent in-depth analysis of the components used on the iPhone X revealed that it costs Apple approximately $370 to make the device, which means that Cupertino has a gross margin higher than in the case of the iPhone 8.

A chart put together by Statista shows how the cost of making the iPhone evolved since the debut of the iPhone 4S, revealing that building an iPhone is now nearly twice more expensive than it was 10 models ago, while the price has increased by approximately five times for the base models.

The 16GB version of the iPhone 4S had a manufacturing cost of just $196, and the estimates increased with every new release, with just a few exceptions when they actually dropped by a few bucks. For example, the iPhone 5s was more affordable than the iPhone 5 ($198.70 versus $207), but in the rest of the cases, each new iPhone cost more to make given the hardware upgrades.

Higher gross margin with every new release?

By the looks of things, Apple’s gross margin has also increased substantially with the release of new iPhone generations, as the difference between the costs of making an iPhone and its retail price also got bigger for new models.

For example, pricing of the iPhone 4S started at $199 in the United States for the 16GB version and reached $399 for the 64GB model back in October 2011 when this generation launched.

Despite the hefty price of the iPhone X, the device still seems to be very successful, as Apple is currently struggling to align production with demand and make more units available to buyers. The device is currently sold out in the majority of markets and it’s estimated that enough units would be shipped by the end of the year, ahead of a major production boost in early 2018.

For the time being, waiting times for a new iPhone X are approximately 4 weeks and are expected to drop as production struggles are being resolved.