Here's How Much It Costs To Build The iPhone X

Here's How Much It Costs 

To Build The iPhone X

Apple announced three smartphones last week but everyone has their eyes set on the iPhone X and it's astronomical price. The iPhone X pays homage to the 10th anniversary of the iPhone and it comes packed with some  of the latest hardware we've ever seen on any Apple device.

© Apple

Apple has priced the iPhone X at INR 89,000 to INR  1,02,000 which will defnintely burn a hole in many pockets. In order to understand the high pricing, Chinese industry insiders have estimated the total cost of the components going into the iPhone X and also details that Apple has a high enough margin for profits. 

According to the report, Samsung supplied Apple the Super Retina display which costs somewhere around $80. Apple's new A11 Bionic chipset is also costing the company a bit more when compared to the A10 processor. Insiders say that the chip set Apple back $26 a piece plus $18 for the Qualcomm modem. The 3D-facing sensor costs Apple $25 while the NAND memory supplied by Toshiba costs $45.

© Apple

If we add up all the cost of the components, the iPhone X costs Apple at least $412 (INR 26,445) to make which is nowhere close to the retail price of INR 89,000. Having said that, there are other costs involved that attribute towards the high selling price. Apple invested heavily in AR and R&D which needs to be added to the iPhone X's cost. A lot of the revenue will also contribute towards marketing and advertising, retail overheads, rent and salaries Apple has to pay for all their employees. Once we take everything into account, it is safe to assume that the profit margin is far less than the actual figure portray. 

It is worth noting that these numbers are just an estimate and could have cost Apple even more, which would drive the price of the iPhone X up, even higher. This suggests that the iPhone X may have been even more expensive if Apple had wanted to keep its profit margins unharmed.