Apple iPhone XS Max estimated production costs 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.