As to the increased cost of the iPhone X, the primary culprit is the device’s brand new edge-to-edge display. Hardly a surprise, the…
As to the increased cost of the iPhone X, the primary culprit is the device’s brand new edge-to-edge display.
Hardly a surprise, the display panel has long been the most expensive single component of every iPhone model, and seeing as how the iPhone X has a gargantuan OLED display, it’s not outlandish to see a price jump of 81% for the iPhone X display relative to the iPhone 8 display.
Other pricey components on the iPhone X include the device’s stainless steel chasis, which is about $15 more expensive than the aluminum used on the iPhone 8.
For what it’s worth, Apple has never been keen on BOM estimates. Not only has Apple said that most estimates are incredibly off-base, it’s worth noting that the cost of materials does not take into account manufacturing costs and, more importantly, research and development dollars. To this point, Tim Cook said the following during an earnings conference call two years ago: “Generally, there are cost breakdowns around our products that are much different than the reality. I’ve never seen one that is anywhere close to being accurate.”
While Apple could have theoretically priced the iPhone X lower while still enjoying stellar margins, the incredible demand we’ve seen for the iPhone X thus far suggests that Apple priced it just right and, per usual, is now laughing all the way to the bank.
