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Just How Profitable has iPhone X been for Apple?

iPhone X

Apple’s latest, much-hyped phone iPhone X definitely makes more money for the company per phone than the iPhone 8. As per an analysis, the iPhone X’s flashier parts have charged Apple 25 percent more than the iPhone 8. However, iPhone X is retailed at a 43 percent higher price.

In the US, the manufacturing cost of iPhone X is $357.50 (approximately 23,200 INR). And the device sells at a price tag of $999 (roughly 64,800 INR). This gives Apple a gross margin of a whopping 64 percent. The iPhone 8 is sold for $699 (approximately 45,300 INR). The iPhone 8 has a gross margin of a good 59 percent.

This has turned out to be quite surprising. Technology products often become more lucrative as they age. Then, eventually, the parts for such products start dropping in cost.

The iPhone X is a one of a kind device, which went on sale just the previous Friday. And iPhone 8 is just an update on last year’s iPhone 7, which itself was similar to the iPhone 6 that was released back in 2014.

Why is iPhone X so expensive?

Apple’s iPhone X is simply high priced due to its designing. Particularly speaking, it has a 5.8-inch (14.8 cm) edge-to-edge display.  The screen costs $65.50 (roughly 4,300 INR). The iPhone 8’s 4.7-inch display is priced at $36 (approximately 2,300 INR).

Apple’s latest product is so expensive mostly because the iPhone 8 uses older LCD technology, whereas the latest addition model uses what is called “Super AMOLED” technology. This technology lets users view more vivid colors, with a thinner overall design.

Another pricey material used in the expensive iPhone is the stainless steel chassis. This costs $36 (approximately 2,300 INR). The aluminum housing of the iPhone 8 costs $21.50 (approximately 1,400 INR). This steel is less likely than aluminum to bend when it is flexed.

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