The iPhone X is a really good phone, and the hype is real with this one. So with Apple releasing 3 iPhones at the same event was quite unique. Especially with one gorgeous bezel-less iPhone X and the other two with the same played out classic iPhone design.
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Analysists assume the iPhone X costs around $357.50 to produce, which is currently on sale for $999. That is a profit margin of around 65%, now look at iPhone 8. With a selling price of $699 and a production price of around $248, it has a profit margin of about 60%.
So, Apple has a higher profit margin for the iPhone X, I should say it’s only fair. Nobody wants the iPhone 8 or 8 Plus and are readily happy to pay a little more premium for the fancier iPhone X. Plus seeing how the iPhone X has been a huge success, can you really blame them?
Apple has always done this, and will most probably continue to do it. On top of that, they are the only smartphone manufacturer who can actually put such a high-profit margin.
Apple can be different here because they are the 800-pound gorilla
With all of this said, the $357.5 that Apple needs to shell out for an iPhone X isn’t the complete price of the phone. You also need to consider the R&D costs, Apple’s image, the software support (iPhone experience) among others. And also you can consider the higher than average prices Samsung has been milking out from Apple for its gorgeous new OLED displays.
Let’s talk about why this was the most expensive iPhone to ever go into production. The iPhone X did feature the biggest iPhone screen we’ve seen yet. And also had a solid camera, and the [email protected] feature didn’t help much with minimizing the expenses. Dailymail also mentioned that the choice to go with the stainless steel chassis also kept the prices high.
You also need to keep in mind that these estimates aren’t always exact. The CEO of Apple, Tim Cook also said “I’ve never seen one that is anywhere close to being accurate” back in 2015.