Check out Apple's ever-rising bill of materials that led to a $999 iPhone X

Check out Apple's ever-rising bill of materials that led to a $999 iPhone X

The first teardown analysis of the iPhone X revealed that its parts amount to about $357.50 in total for Apple when buying in bulk, and afterwards IHS Markit came up with a very similar number - $370.25 - including the box contents, and costs of assembly. Now, Statista has made a chart demonstrating the ever-rising bills of materials for subsequent iPhone models with the introduction of new features and designs, which led to price increases for the end users, too, culminating with the $999 iPhone X.

The most expensive part in the newest iPhone is Samsung's 5.8" flexible AMOLED panel and its accompanying paraphernalia like the Force Touch sensor, polarizer and cover glass. The package amounts up to the whopping $110 for the privilege to turn blueish at an angle. We kid, but about $70 of this tag goes directly to Samsung, which might explain a part of its record-breaking profit announcement.

Surprisingly enough, though, the next most expensive part that goes into an iPhone X production is not the dual camera set, the battery pack, the memory, or the blazing fast Bionic chipset, but rather the rear enclosure. The reinforced glass and the new stainless steel frame cost much more than the aluminum alloy unibody that Apple used so far in previous iPhone iterations, to the tune of $61 to assemble and polish in two colors. Well, the X might cost more to assemble than the iPhone 8, but Apple also asks more for it, so the hefty margin from the "all-screen" handset might lead to a record-breaking quarter for Apple, too.

source: Statista

Related phones

iPhone X
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 2716 mAh(21h 3G talk time)
iPhone 4s
  • Display 3.5" 640 x 960 pixels
  • Camera 8 MP / 0.3 MP VGA front
  • Processor Apple A5, Dual-core, 800 MHz
  • Storage 64 GB

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20 Comments

1. worldpeace

Posts: 3028; Member since: Apr 15, 2016

Compared to iPhone8+ ~$75 difference in cost to make, and $200 difference in pricetag Compared to iPhone8 ~$120 difference in cost to make, and $300 difference in pricetag That chart didn't explain $999 iPhoneX's price. The only explanation for that pricetag is Apple's greed

4. Arch_Fiend

Posts: 3925; Member since: Oct 03, 2015

The iPhone 7 32gb and iPhone 8 plus 64gb are about $70 apart in manufacturing cost and the iPhone 8 plus cost $250 more to buy than the iPhone 7. By that logic it makes since that the iPhone X cost $300 more than the iPhone 8, the X cost an extra $116 to manufacture after all. If anything the price difference between the X and 8 should be bigger but even Apple isn't that stupid.

8. Phullofphil

Posts: 1725; Member since: Feb 10, 2009

There is other cost to the phone besides parts. There is a lot of overhead on the research side, patent pay out, and other things that dictate the percentage of profit and in turn the price. Also looking at the graph it does not show what the manurfacriring costs are. Even though it would be minimal. Now for the greed part well that is ridiculous if you get past the I hate Apple thing. They are not running a charity, or they are not there to sympathize with the public about making stuff as cheap as possible. They and really every phone company out there is trying to make the most profit as possible. Supply and demand. Next year when you are looking at the record amount of iPhones sold Apple will be proven that the price tag was justified. Samsung, lg, one plus, and everybody else out there has record price tags on there phones. The note 8 cost almost the same as the iPhone X with comparable 64gb storage. Samsung has always priced its flagships right behind Apple as a lower price alternative. For some reason it does not say this is a response to coment number one atliest on my phone.

10. mootu

Posts: 1254; Member since: Mar 16, 2017

Apple never spends more than 10 to 15 % on R&D and marketing. That % is of the phones retail cost. Which makes the phone come in at less than $500. That gives Apple a profit of over $500 on each and every phone sold. And you say that is not greed ?.

11. Phullofphil

Posts: 1725; Member since: Feb 10, 2009

There is more cost than r and d and yes it’s not greed. No more than any other company. Supply and demand. Blame capitalism if you need to

13. mootu

Posts: 1254; Member since: Mar 16, 2017

You call it capitalism i call it greed, it's the same thing in apples case. Take for example the back panel $539, for a $61 piece of glass, i could buy a OnePlus 5T and still have $40 left over. Same with the fast charger and cable that they don'y include in the box. It's all designed to milk the customer for every penny.

16. bur60

Posts: 981; Member since: Jul 07, 2014

I like the Iphone X as a device, but cmon. You can't justify that price. Neither can we justify the Note 8, LG v30 etc. They are all just exploiting us.

15. Nine1Sickness

Posts: 883; Member since: Jan 30, 2011

It only costs $190 to build an iphone 4s? They should build a modern size and spec 4S, I'd buy that over the 8 and X.

20. sgodsell

Posts: 6585; Member since: Mar 16, 2013

Nobody wants a 3.5" display anymore. Look at the 2016 iPhone SE cost $160, and that has a 4" display. Yet people are not buying tiny smartphones anymore. Just a week ago you could pickup a new iPhone SE for $150 brand new. This leads me to believe that these prices are made up, or are published to make iPhone users feel like they are getting a lot for their money. But in reality they are not.

2. Arch_Fiend

Posts: 3925; Member since: Oct 03, 2015

I find it ironic that the iPhone SE is so much cheaper to make now than both iPhone 5 models were back in 12 and 13.

3. g2a5b0e unregistered

I don't see what could be ironic about that. One would expect that a phone using mostly the same parts as a phone that came out years earlier would now be cheaper to make.

5. Arch_Fiend

Posts: 3925; Member since: Oct 03, 2015

Mostly the same parts... lets see, the front camera, screen and touch ID, 3 parts are the same so not mostly and the build material changed. I still find it ironic that the difference is so big even with the upgrades that the SE got, I suppose the question is, how much cheaper was it to use metal instead of glass in the construction of the SE over the 5.

6. Phullofphil

Posts: 1725; Member since: Feb 10, 2009

Pretty sure is Has the same manufacturing technique and also the same logic board. So just like anything else like a game console if your basically making the same phone then the price to make it will go down.

9. Arch_Fiend

Posts: 3925; Member since: Oct 03, 2015

You guys keep saying they are basically the same but if you made a chart the SE and 5/5s will have more uncommon than they have in common. It's cool though, think what you want, I stand by what I originally said.

7. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

Great, they know the cost of the phone's materials. No love for the R&D Departments? Concept Designers... Research and Engineering... Marketing and Promotion... or the janitors who mop the floors at the Apple Spaceship?

12. phonearenaviewer

Posts: 47; Member since: Jan 22, 2014

Soon people are going to go back to flip phones as I see they are starting to return to stores. The smart phone carriers are pricing themselves out of the market.

14. disatrousrainbow

Posts: 64; Member since: Oct 24, 2015

I really wish they wouldn't have gone with a stainless steel band for the X. It definietly looks nice but I've had mine for a day and already there are some small scratches on it and it feels more slippery than the metal frame on an 8.

17. GdgetXpert1337

Posts: 117; Member since: Oct 31, 2017

Let see, bes display ever in smartphone, fastest soc in phone by far this year, stainless steel band(better than cheap aluminum on note/galaxy) Best camra for still photos as confirmd by dxoMARK Best dual speaker on phone beside htc boomsound device Unmached ecosystem, faceid that android oem will copy next 2 year, Yup i can undrstand why bom rised They truly givin us best of the best at moment

18. HildyJ

Posts: 328; Member since: Aug 11, 2012

One correction. When you said "The most expensive part in the newest iPhone is" you shoud have ended the sentence with "the over 100% markup, a.k.a. the Apple tax." Always has been and, as long as there are sheeples, always will be.

19. MarvzIsFallen

Posts: 646; Member since: Aug 11, 2017

Congrats apple for being the most profitable company. Let the other OEMs eat the remaining 10% of the total profit. They sucks and do not deserved with the success you are now having. This phone is luxury, if u are not into its price then apple has iphone SE for you whiners.

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