Apple iPhone XS Max estimated production costs revealed

Apple iPhone XS Max estimated production costs revealed
At $1,099 for the base model and an eye-watering $1,449 for the range-topping 512GB variant, the iPhone XS Max is Apple’s most expensive iPhone ever. And today, in new estimates published by TechInsights, the actual component value of the newest iPhone has been revealed.

In total, the 256GB model of the iPhone XS Max, which is reportedly the most popular offering among consumers, is valued at an estimated $443, representing a hike of almost $50 over last year’s 64GB iPhone X. Breaking this new figure down, the 6.5-inch display is unsurprisingly the smartphone’s most expensive component at $80.50 per panel. This is followed closely behind by the new Apple A12 Bionic chip and modems at $72. Elsewhere on the list, items such as the internal storage and external housing stand out due to their costs of $64 and $58 respectively. The upgraded cameras are also rather pricey too at $44. Interestingly, though, this is almost the same cost as those featured on last year’s iPhone X.

Now, in order to reach the 256GB model’s retail figure of $1,249, research and development costs for the smartphone need to be added on to the component total. Moreover, the cost of creating the latest version of iOS and optimizing it for use on the devices also adds to the total. And, on top of this, the millions spent on manufacturing, distributing, and, of course, advertising the new smartphones needs to be accounted for in the new pricing too. 

While there’s no denying that Apple’s smartphones are some of the most expensive smartphones to produce when all costs are considered, it’s ultimately Apple’s nice chunk of profit that pushes the pricing above the $1,000-dollar mark. After all, becoming a trillion-dollar company is pretty tough with profit levels of less than 5% in the smartphone market, as seen with Xiaomi.

Apple iPhone XS Max estimated production costs revealed

source: TechInsights

Related phones

iPhone XS Max
  • Display 6.5" 1242 x 2688 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A12 Bionic, Hexa-core, 2490 MHz
  • Storage 512 GB
  • Battery 3179 mAh(25h talk time)

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62 Comments

1. RevolutionA

Posts: 390; Member since: Sep 30, 2017

This is called real Premium smartphone for real world people

3. OneLove123

Posts: 792; Member since: Aug 28, 2018

Yep, love my super premium note 9 and regular joe xs max 256GB.

12. Atechguy0

Posts: 918; Member since: Aug 03, 2018

I don't believe for one moment that it cost $443 USD for the iPhone XS Max. Oh and last year the iPhone X cost $370. So that is a hike of $80 USD, and not $50. Get your facts correct first before you post Joshua. "Market analysts with IHS Markit recently published a cost analysis of Apple's new iPhone X. The iPhone X with 64 GB of storage is priced at $999, but IHS Markit claims that the device costs just $370 to manufacture.Nov 15, 2017."

25. Phullofphil

Posts: 1740; Member since: Feb 10, 2009

Your an idiot. Your so quick to discredit the guy that you believe anything else. He did do his research. You just copied somebody else’s

27. Atechguy0

Posts: 918; Member since: Aug 03, 2018

He clearly didn't do his research. Just do a search for yourself. You will see what I have said is true.

33. kiko007

Posts: 7469; Member since: Feb 17, 2016

The irony of your posting this is both hilarious and tragic. Hilarious because you’re too stupid to recognize hypocrisy of stating “do your research” when you’ve done exactly none yourself. Tragic because I know you aren’t gonna realize it without me pointing it out to you. I swear Sgod, you’re hopelessly incompetent.

42. Atechguy0

Posts: 918; Member since: Aug 03, 2018

I should have posted that the iPhone X cost went down to $358 per unit. That is the truth kiko007. Look the iPhone 7 a year before cost $220.

46. ezfidel

Posts: 61; Member since: Dec 25, 2012

Ur the typical Apple guy that everybody talks about

13. ijuanp03

Posts: 494; Member since: Dec 30, 2014

Apple is laughing at people like you because they make you pay a $400 device at 3x the price. LOL

26. Phullofphil

Posts: 1740; Member since: Feb 10, 2009

Every phone company would do this if they could. Apple is laughing. Apple is a corporation not a person with feelings. There jobs are to make the most money as possible. Samsung charges just as much fore there phones.

40. Shi.O

Posts: 50; Member since: Nov 11, 2011

This is stupid. You don't count the other things such as software, tax, labor fee, marketing, etc.

47. Leo_MC

Posts: 6391; Member since: Dec 02, 2011

That would require "thinking" which few persons are capable of.

37. ecmedic4

Posts: 520; Member since: May 02, 2013

They got the prices wrong. The 256gb version in the US is 1249. And the 512 1449. So unless they are quoting prices for somewhere else, those prices are wrong. This is before tax of course

2. XDAdam

Posts: 276; Member since: Feb 03, 2016

You really cant put a price on research and development.

9. cmdacos

Posts: 3819; Member since: Nov 01, 2016

Lol, so true

22. worldpeace

Posts: 3092; Member since: Apr 15, 2016

Yeah, R&D is part of investment, and every company have that cost.

38. Sakeem

Posts: 856; Member since: Sep 05, 2012

What R&D do you think Apple had this year? I mean it's almost the same exact phone from last year that they discontinued?

48. Leo_MC

Posts: 6391; Member since: Dec 02, 2011

Do you know what is the income of a middle ml programmer, do you know how many people are needed to design and implement the ml engine of the A12, or do you think that tech comes from the skies? How about camera or screen calibration, screen testing (Samsung does what Apple is saying, because it has no Ideea how 3D touch works for the iPhone). How about water resistance testing, designing, choosing the materials etc?

54. cocoy

Posts: 454; Member since: Oct 30, 2015

@Sakeem You are wrong, R&D cost are being amortized for a certain period which the Company expects that they can benefit from it. Even if they did not produce smartphone or incurred additional R&D cost this year, they still have to recognize R&D cost pertaining to previous years which add up to the cost of the company.

62. Sakeem

Posts: 856; Member since: Sep 05, 2012

@cocoy......thank you for the response. It was legit question and I appreciate that you didn't resort to name calling.

57. BLUEBLASTER

Posts: 908; Member since: Feb 23, 2014

That's exactly it! They had to research how to trick people.

15. ijuanp03

Posts: 494; Member since: Dec 30, 2014

"video stereo recording" first time ever on an iPhone which is available for a decade in any other device. That is R&D alright.

20. worldpeace

Posts: 3092; Member since: Apr 15, 2016

And it still sound muffled.

30. Phullofphil

Posts: 1740; Member since: Feb 10, 2009

what you think they could not have put that on there from the very start. For what ever reason in research they felt they did not need to. Disagree or not. That is research. Like I guess it’s cool but not a deal maker or breaker for me.

29. Phullofphil

Posts: 1740; Member since: Feb 10, 2009

The profit they make is the profit they can make. They don’t owe anybody anything. They make a product and sell it for as much as possible. These other companies put extra stuff in their product or box to try and compete with Apple. Apple does not need to do that to sell their product they are already selling it. Apple does not need to do that to sell their product they are already selling it. They can make as much profit as they see fit. They are not greedy. They are a smart company that’s banked off a product that every other company copies both in design and image of brand. Seriously guys please let’s just talk about the technology instead of whining about something. One last thing to think about. I sell my iPhone back to them after half a year and they recycle it so how much money do they really make off of me when I only spend $600 before I get my next phone. That includes apple care which I have used. I picked up the note the other day and besides the button on the back they are a great phone. But every apple arrival you dips**ts got to say stupid s**t that makes it so peopl that have something is full to say not even comment because the iq of the comments start off horrible.

44. AxelFoley

Posts: 537; Member since: May 30, 2017

R&D for Apple, $2.8 billion, or approximately 3% of their revenues. Guess it's actually pretty easy to put a price on R&D.

49. Leo_MC

Posts: 6391; Member since: Dec 02, 2011

It's been years since Apple started spending over 10 billions /y on R&D.

4. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Is what it is

5. UglyFrank

Posts: 2188; Member since: Jan 23, 2014

S9+ is about $375 BOM so I can imagine the Note 9 definitely breaks the $400 mark given the digitizer & pen etc

6. joshuaswingle

Posts: 413; Member since: Apr 03, 2018

That's where you are actually wrong. Samsung does have very similar costs to Apple when it comes to manufacturing. But the company doesn't have to develop and maintain every aspect of iOS. It receives Android for free entirely. All it develops is a custom overlay. If Samsung used its own OS it would probably have prices that matched Apple's more closely. But in both cases, as I said in the last paragraph, the factor that pushes prices past $1000 is the big profit margin that these companies command.

* Some comments have been hidden, because they don't meet the discussions rules.

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