iPhone XS Max production cost is shockingly low

Each iPhone XS Max's part cost estimate shows that less than half of the purchase price is spent manufacturing the device. This is Apple 's most expensive phone and is probably the most cost – effective one.

Storage costs have increased dramatically, but Apple has reduced costs by removing 3D touch components from the screen.

TechInsights analytics broke up iPhone XS Max with 256 GB of storage. This is the most common version of Apple's new mobile phone.

As part of the disassembly, TechInsights estimated the cost of each component. The total is $ 443, which is $ 1,249 for the product. Therefore, only 35% of purchase price is for hardware.

Of course, the remaining $ 806 is not profit. This nomenclature does not apply to salaries of employees, advertisements, and other Apple expenses. In addition, software is not included in BoM, sales of iPhone and iPad are necessary to develop iOS and its embedded software.

Still, Apple is very informative. The company made a profit of $ 11.5 billion in the previous quarter.

Cost of iPhone XS Max component

TechInsights compared the cost of iPhone XS Max and iPhone X components since last year. The latest model is bigger, its price is 100 dollars higher, BoM is only 47.56 dollars.

Most of the components are almost the same, even on the screen, as in last year's model. Analysts say "iPhone Xs Max OLED screens are getting bigger, so it costs more," analysts said. "Since the 3D Touch component previously installed on iPhone X was deleted, the cost of this component was only from $ 77.27 to $ 80.50.

One of the biggest increases is 256 GB of storage. TechInsights estimates that this amount has risen from $ 45.35 to $ 64.50.

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