The iPhone X costs way more to make than the iPhone 8, because of... Samsung

The iPhone X costs way more to make than the iPhone 8, because of... Samsung
Yesterday, a teardown analysis revealed the iPhone X parts to come at a $357.50 total for Apple when buying in bulk, and today the granddaddy of all industry bill of materials (BoM) research, IHS Markit, came up with a very similar number, $370.25, including the box contents, and costs of assembly. 

The difference this time, though, is that IHS included a breakdown of the price for all parts, so now we know why the iPhone X costs $115 more to make than the iPhone 8, which went a similar BoM estimate treatment by IHS last month.

Just as reported yesterday, 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 in its turn.


source: IHS

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 8
  • Display 4.7" 750 x 1334 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 1821 mAh(14h talk time)

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31 Comments

1. EC112987

Posts: 1216; Member since: Nov 10, 2014

Good for Samsung.

2. haruken

Posts: 308; Member since: Nov 06, 2013

Poor Apple fans, they haven't realized yet that Samsung is the bigger winner in the end thanks to their money.

5. Well-Manicured-Man

Posts: 715; Member since: Jun 16, 2015

I pity you for having such primitive thoughts. I don’t buy a product to hurt or help a certain company. I buy the product because it like it.

6. jacky899

Posts: 431; Member since: May 16, 2017

That's how Koreans in general think. Their national patriotism and pride is off the roof.

17. BuffaloSouce unregistered

How much of that money belongs to you?

4. Sakeem

Posts: 865; Member since: Sep 05, 2012

Funny. When will fanboys from both sides realize Apple needs Samsumg and vice verca. They are competitors but business partners also. Pointless arguements.

13. Klinton

Posts: 1409; Member since: Oct 24, 2016

Agree - Apple needs Samsung !! Badly! But why ' vice verca.'??? If Apple fail , all the Apple's herd, will move to Samsung. Samsung will win even more.

16. kiko007

Posts: 7521; Member since: Feb 17, 2016

You didn't understand a single word of his post, did you?

26. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Samsung does not need A0ple. Samsung is an older company and bigger too. They ate better than Apple because tje7 make stuff. If Samsung wanted to be like Apple it wouldn't be a problem. Samsung isn't looking to be Apple in the same way. They want to dominate multiple markets. Which is why they lead in making lots of stuff.

28. ShaikhJGI

Posts: 361; Member since: Jan 10, 2014

At a point when every1 got to know that this guy is indeed TechieXP, his typo's also made a return :D :D :D Initially few people had doubt that he is Techie or not due good spell checks but now he cleared that doubt as well Lolz :D :D

7. palmguy

Posts: 987; Member since: Mar 22, 2011

I wonder how long before the X sales drop because some people in the world have better things to do with a grand. I wonder how many subsidized customers will hate they have an $800, $900+ final bill when they jump to another company because it takes $500+ to fix the back of their phone. I wonder can Apple/Samsung repeat the grand price for a device next year.

9. kiko007

Posts: 7521; Member since: Feb 17, 2016

Stop wondering: The first thing simply isn't going to happen. It hasn't happened with any other iPhone... why would it now? People shopping in that price bracket aren't pinching pennies over a few hundred dollars. The second thing is unwarranted assumptions. You have no idea what the outcome of these extra expensive phones will entail, you're just assuming people care enough to complain. Well, I got bad news... they mostly don't. The third thing has an obvious answer: Yes. Apple can price basically however they'd like seeing as how they've got their own ecosystem. Samsung may not have that luxury, but their fanbase has proven to be extremely loyal and willing to pay top dollar for goods.

29. ShaikhJGI

Posts: 361; Member since: Jan 10, 2014

That's not correct kiko, a major chunk of those customers buying an iPhone X or Note 8 are stretching there budget too much sacrificing for other things in there life. I know few friends of mine kicking there contingencies just to enjoy the awesomeness of these two beasts(Some are culprints o. Upon that, if they have to shell out $300 for a display & $600 for back of the phone, imagine there situation. "Only rich or who can easily afford will buy an iPhoneX or Note 8" is a bad statement buddy.

30. ShaikhJGI

Posts: 361; Member since: Jan 10, 2014

**Some fall to brilliant marketing I mean in the middle of above comment. 240 sec limit my A$$ :(

8. Hollowmost

Posts: 425; Member since: Oct 10, 2017

Good for both

10. mikehunta727 unregistered

s**t they are paying $110 for the best display in a smartphone in the world, that's nuts

11. Settings

Posts: 2943; Member since: Jul 02, 2014

You can even get a decent Android Smartphone around $100.

14. mikehunta727 unregistered

Yeah ik

15. mikehunta727 unregistered

Personally Id spend at least 300 on a good Android phone though. Preferably older flagships on a good deal or such

18. bucknassty

Posts: 1373; Member since: Mar 24, 2017

cant you get a g6 for around that now? thats a great deal

22. mikehunta727 unregistered

Yeah for sure, you can shop around on Craigslist/eBay, etc , and can strike some serious luck on a device for a great price Back when the G4 launched, I managed to snag one for my bro for $400 brand new, which was a really great price at the time

21. izim1

Posts: 1607; Member since: Feb 04, 2013

It's not just reason you have trouble with, reading comprehension is also hard for you, huh? The display itself is $70. And that accounts for a premium due to low yield rates because of the stupid notch. You truly believe samsung would sell "the best display in a smartphone in the world" for under $70 a pop? Talk about delusional...

12. LanjaKodaka

Posts: 219; Member since: Sep 27, 2016

A bad worker blames the tools.

19. fyah_king unregistered

$115 is not way more.lol

20. matistight

Posts: 1031; Member since: May 13, 2009

So it cost $17 to make, but it is very difficult to make? Seems like someone is getting screwed in the FaceID manufacturing business.

23. grahaman27

Posts: 364; Member since: Apr 05, 2013

So let me get this straight. The BOM cost went up $110, while the retail price went up $350 and this is Samsung's fault? That's a $240 markup.

27. sissy246

Posts: 7129; Member since: Mar 04, 2015

31. path45th

Posts: 407; Member since: Sep 11, 2016

Samsung is turning into a component company for Apple. Maybe one day Apple will buy Samsung.

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

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