Apple build costs for 256GB iPhone XS Max estimated at $453 [u]
The new 256GB iPhone XS Max is comprised of roughly $443 worth of parts according to the latest report out of TechInsights, merely $47 more than the build cost of last years 64GB iPhone X.
Source: iFixIt
Apple managed to trim the fat on its bill of materials for this year's iPhones, increasing the margin for profit, TechInsights suggests in its analysis.
The iPhone XS Max 256GB -- likely one of the most popular configurations -- runs about $443 for parts and assembly. A large chunk of that cost goes to the large 6.5-inch display, which TechInsights estimates at $90.50, more than $12 more dear than the 5.8-inch display on last year's iPhone X.
Along with a more costly display, the updated A12 processor, gigabit-class LTE modem, larger battery, additional memory and a "significant increase" in the cost of non-electronic components swelled the final tally. According to the firm, iPhone XS Max has a larger, heavier housing than that of the iPhone X, while the new handset's internal frame increases process costs related to spot welds, inserts and other internal structures.
Apple is selling the 256GB iPhone XS Max, which AppleInsider reviewed this week, for $1,249.
As usual, BOM reports should be taken with a hefty grain of salt. The analyses are merely estimates based largely on current market values of critical components and is unlikely to reflect Apple's actual cost. TechInsights itself notes the figures are at time based on assumptions.
Updated to reflect a change in Tech Insight's estimates regarding display components. The company previously said Apple removed parts associated with the phone's 3D Touch system, but further investigation found that to not be the case.
Source: iFixIt
Apple managed to trim the fat on its bill of materials for this year's iPhones, increasing the margin for profit, TechInsights suggests in its analysis.
The iPhone XS Max 256GB -- likely one of the most popular configurations -- runs about $443 for parts and assembly. A large chunk of that cost goes to the large 6.5-inch display, which TechInsights estimates at $90.50, more than $12 more dear than the 5.8-inch display on last year's iPhone X.
Along with a more costly display, the updated A12 processor, gigabit-class LTE modem, larger battery, additional memory and a "significant increase" in the cost of non-electronic components swelled the final tally. According to the firm, iPhone XS Max has a larger, heavier housing than that of the iPhone X, while the new handset's internal frame increases process costs related to spot welds, inserts and other internal structures.
Apple is selling the 256GB iPhone XS Max, which AppleInsider reviewed this week, for $1,249.
As usual, BOM reports should be taken with a hefty grain of salt. The analyses are merely estimates based largely on current market values of critical components and is unlikely to reflect Apple's actual cost. TechInsights itself notes the figures are at time based on assumptions.
Apple CEO Tim Cook chimed in on supply chain "guesstimators" years ago, saying he has never seen a BOM estimate that was close to accurate.All cost estimates provided here are compiled using information available to us at the time of the initial teardown. Some assumptions have been made where concrete data is not yet available. We will continue to gather and refine this costing data throughout our ongoing deep-dive teardown process and analysis. While we do not expect drastic cost changes, we do expect some adjustments.
Updated to reflect a change in Tech Insight's estimates regarding display components. The company previously said Apple removed parts associated with the phone's 3D Touch system, but further investigation found that to not be the case.
Comments
As for the size of the battery. Size is a contributor to battery life but isn't as important as the power management controller and the iPhone's settings. Besides if you are draining your iPhone's battery before the day is done you need to get a life.
Apple, of course, doesn’t report what it costs to build various iPhone models. But based on what Apple does report, we can get a ballpark idea of what the average cost of sales for iPhones (in, e.g., a given quarter) is. Looking at the holiday quarter for 2017, when the iPhone X was released, we can say with some confidence that the minimum the average cost of sales for iPhones (including, e.g., iPhone SEs and older models that were still available) could have been was around $450. The math doesn’t work otherwise. The cost of iPhone X models was surely meaningfully higher than that average.
In fact, I only skimmed the article reply to your post. I really just came here for the forum member replies but these estimates are useless.
Corporations don’t pay taxes. You the customer are the ones that end up paying. So anyone saying they don’t pay enough, OK, really all you’re doing is taxing yourself even more.
Apple has no need to race to the bottom in profits. Android has been marketed as the cheap OS. That was when Google was selling their Nexus phones. But as they try to turn them self’s more into Apple and sell high cost Pixel phones and other pixel devices. People still don’t want to spend the money and buy it.
when Apple is close to 90% of the Smartphone profits, and Samsung makes most of the rest, which us still a fraction of Apple, that leave everyone else fighting over scraps. They just hope to break even, maybe make a little profit and not lose sales. Google wins no matter what. You go out of business, not a big deal as there are many others to take your place. They can’t even make money after the sale. Samesung keeps trying, but it’s Googles services everyone wants and they have to be front and center in Android devices.
in the end it comes down to what people are willing to pay for your product!!! There is a reason why a few people will buy a bunch of a new Game Console and then turn around and sell them at double the price, making a huge profit. I’d rather just wait and get it at retail price while others just have to have it NOW. Supply and Demand. You go to sell something, do you want to get as much money as you can for it or just sell at a fixed price, your costs and a 10% markup as to not rip people off as you would feel bad?
As an example, for Toyota to do mid-model update to the Toyota Camry takes about 300 man years of engineering.
I agree with others - these estimates are little more than some pundit waving their hands. The other thing that is completely unknown and invisible is the R&D costs. Not only is Apple designing a new phone, but they are designing custom chips. I'm sure the amount of money they put in R&D is huge. Of course that gets amortized across every unit they sell, but we all keep expecting them to come out with a better model next year, so those costs are going to continue.
Awesome, so I spend $443 on the parts and assemble them on my own and then I can install iOS, since iOS is free!! I'm sure it will be authenticated without any issues and that FaceID will magically begin to work!
Why is Apple overcharging us??
/s
As Larry noted above, it is likely that these other costs combined with the BOM (for the sake of argument I'm assuming the BOM guesstimates are more or less correct) roughly doubles the cost. But if people knew the phone costs $825 and sells for around $1000, the reaction would be "hmm. okay, that's fair" rather than "HAIR ON FIRE FREAKOUT APPLE IS EVIL!!"
In 2016, for example, Apple spent 10.39 billion on R&D.
By itself, build cost is a meaningless number because it excludes substantial costs incurred by Apple for each and every phone it sells that other manufacturers do not incur. Specifically, every iPhone includes the cost 5 years of more of OS updates and the cost to install those updates as well as the cost of Apple's iCloud and support structure -- as well as apps like Numbers, Pages, Maps and Safari.
Unless one is comparing Apples to Apples one should not make the comparison.