iPhone X estimated to cost $357.50 to make

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The iPhone X is estimated to cost $357.50 to make.


Óscar Gutiérrez/CNET

While the iPhone X is expensive to buy, it’s also expensive to make — but maybe not as expensive as you’d think.

The iPhone X’s parts add up to about $357.50, according to TechInsights (via Reuters). That converts to about £270 or AU$470.

To arrive at this estimate, TechInsights tore down an iPhone X and tallied up component costs. Keep in mind that these are just estimates, not the exact figure Apple pays per phone. Apple declined to comment.

Since the iPhone X starts at $999, £999 and AU$1,579, this estimate puts Apple’s profit at a gross margin of 64 percent. The iPhone 8 — which costs $699, £699 and AU$1,079 to buy — reaps in a gross margin of 59 percent, according to the report. This would mean that Apple makes more money off the iPhone X than the cheaper iPhone 8.

New iPhone X hardware like the big OLED display, wireless charging and TrueDepth camera system gives the phone much of its appeal, but it also adds to its price. For example, the report estimates that the 5.8-inch OLED display panel and its associated parts cost about $65.50, which is almost double what the iPhone 8’s $36 LCD display runs.


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This is also interesting: TechInsights estimates that the 256GB version of the iPhone 8 Plus costs $367.50 (about £280/AU$480). This would make the 256GB iPhone 8 Plus more expensive to make than the 64GB iPhone X, despite the fact that Apple charges more money for the iPhone X.

Apple CEO Tim Cook has previously stated that the iPhone X’s price is based on the value that you get from the phone. Still, that’s some steep markup.

Do you think the price is justified? Read CNET’s iPhone X review here.

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