TechInsights’ bill of material estimate of $357.50 for the baseline iPhone X model, which retails for $999, proves that it’s costing Apple more and more to make sophisticated new iPhones.

The 5.8-inch Super Retina display costs an estimated $65.50 versus $36 for the 4.7-inch LCD panel found on iPhone 8. The analysis also deemed the phone’s stainless steel chassis another pricey component: it costs $36 to build versus $21.50 for the aluminum housing of iPhone 8.

According to Reuters today, TechInsights has found that iPhone X is more profitable than its iPhone 8 counterpart. As a quick refresher, research firm IHS Markit back in September pegged the iPhone 8 bill of material at $247.51, and $288.08 for iPhone 8 Plus.

The baseline $699 iPhone 8 model has a gross margin of 59 percent, TechInsights says. Even though the flashier iPhone X parts cost Apple 25 percent more those that go into iPhone 8, the phone itself retails 43 percent higher which gives it a gross margin of 64 percent.

Broadly speaking, the gross margin is the difference between selling price and cost.

It is important to note that bill of material is an estimated cost of parts based on supply chain pricing trends: Apple often prepays billions to secure a steady stream of parts at negotiated prices. BOM also excludes many other costs associated with research and development, licensing, packaging, marketing, shipping, sales and so forth.

Tim Cook said during last week’s earnings call that Apple priced its flagship phone according to the value it’s providing. “We’re not trying to charge the highest price we could get or anything like that,” he said. “We’re just trying to price it for what we’re delivering.”

iFixit teardown image top of post courtesy of iFixit

  • farsighted

    I always thought 50% markup was standard. LOL! where have I been.

    Apple is the richest company in the US on a list I saw recently. They do charge more than other companies, that’s for sure. I just hope this phone is as innovative as they say, because $1000 is a ridiculous price to pay for a cell phone. I guess we’ll find out soon after enough people have a chance to do a test run. I’m quite happy with my iPhone 6s+. Really don’t need talking poop emojies.

    • Rowan09

      The Note 8 is also a thousand dollar phone. $1000 is a lot for a 64GB but i understand for a 256GB. Price of materials is not the only cost to assembly the phone this doesn’t include labor, marketing, etc. Nevertheless someone has to pay for customer service and the retail employees. Apple isn’t doing anything out of the ordinary in business. I wish I could do the same.

      • Vinnie Bones

        Bought mine from 650 from Samsung.. traded my iPhone 7. Plus I got a free VR. I like Apple, but no phone in 2017 should cost you more or equivalent to a 1bd apartment. The Note may have some “gimmick” features but goddamn that screen is sexy!! The audio jack (which seems a commodity these days) and stylus is worth it!!

      • Merman123

        It’s all relative. Even $650 is rent for people. Dropping $1,000 on a phone should not impede you paying your rent for the next year, that’s the way you should look at it. If it does, then YOU shouldn’t buy it. Doesn’t mean that scenario is for everyone.

      • Vinnie Bones

        I get what you’re saying, even if I can afford it (which I do) but dropping 1K on a phone is ridiculous. I’m not trying to make anyone feel bad for purchasing it, tbh it’s a very good (and sexy) phone but personally when you look at what LG, OnePlus, Hauwei etc are doing for less with more features, it does make one wonder. At the end of the day, I want to get more bang for my buck, aside from animoji, I don’t see what the X introduced that I haven’t seen before. Then again, it’s a free country, everybody’s entitled to their own opinion *shrugs

      • Except you don’t… Price (and likes) are relative, they change from person to person. One person likes iPhones, the other likes Android Devices, one person likes Anime, the other likes Dramas, one person thinks $1k for a laptop is cheap, the other doesn’t. And whereas other companies do X feature, Apple does Y feature. There are features missing (and gained) when comparing platform to platform and hardware to hardware, unless the devices you are comparing are clones, of course they’ll have their unique selling points. And I don’t understand what you mean by “introduced that I haven’t seen before” Sure, the OLED screen isn’t anything new but its the most accurate. Face recognition also isn’t new but this will be one of the first implementations into mainstream technology… If you have the money, get what you want, if you don’t have the money, go for something else.

      • Rowan09

        Exactly. $650 for a phone could also be high when One Plus sells them for way less too.

      • Vinnie Bones

        I have the money, just most of us just refuse to drop $1200 on a phone overnight that 99.9 does what other phones do, why? Because it’s an apple.. and it’s okay. F$@k that!!

      • Fanboy 

        Build quality, design and the function of hardware with the software are some of the things that make it worth it. It’s not just about specs on paper. The iPhone X’s screen (which was designed by Apple and manufacturerd by Samsung) beat many of the Samsung phones in ratings lol. So sure, hardware and features wise maybe there’s comparable phones out there that are cheaper. But it’s all about the experience with iPhone and to me that experience so far has been worth the $1,000! (P.S. I sold my last years 7 Plus for $600)

      • Rowan09

        What’s a good price? For me $300 is all I want to pay but that’s not going to happen. Apple uses the most expensive parts in their phones including the chip. Trust me we all would like it to be cheaper, but I sell my old devices 7 plus for about $500-$600 and then pay the rest. In that case I’m paying $650 like you are for a 256GB and you have a 64GB (I believe). As you said to each his or her own.

      • My rent is the equivalent of $520

      • Juniors234

        Agreed. A person IMHO should only drop $1000 on a phone if:
        1. They are paying for it with cash that they saved up. NOT Credit card. I repeat NOT a credit Card.
        2. They have 3-6 months living expenses saved up. I’m talking about literally if you and your wife both lost your jobs, you could live off of reserve money until you find new jobs for at least 3 months. The average American does not even have $500 in a savings account to cover unexpected stuff. e.g. car breaks down, medical expenses etc. $500 is not a lot but can cover more than you might think.

        If you got a 7 Plus, or even a 6S Plus in good working condition, just wait another year or two. You’ll save lots of money!

      • Rowan09

        Yes that’s a discount. I also bought a buy 1 get 1 free from Samsung with the S7 Edge last year and 2 VR headsets. Tell me who do you go and see when your Note is damage and you need a new one right away? Apple is also in the retail business which also refelects their high price. Phones were always expensive the telcos always subsidized them before. I had a $800 phone in the 90s. It was a Windows mobile Pocket PC

    • Vinnie Bones

      the X is more than my rent, I like Apple but I don’t like em that much. I gotta eat and still got Sallie Mae on my @ss lol

  • craig

    as much as i like apple and have always bought their products, this just goes to prove apple as a company are greedy rather than customer focused, what a shame.

    • Fanboy 

      Well Apple is a for-profit company and their goal is to make a profit…. lol. They don’t charge THAT much more than other comparable products. They do charge a premium because they are known for their amazing build quality and great software integration.

  • The question should be: Is this the most expensive phone made? If it is it makes sense for it to cost the most. If not…

  • nonchalont

    Well, you know Apple has shareholders to please …thin line between customer centric and shareholder centric. 🙂