As you all are well aware, the starting price of the iPhone
X comes in at $999 for the 64GB model, making it the most expensive iPhone sold
to date. Customers are definitely going to have a field day with the phone when
it is officially available for pre-order, but it looks like Apple might not be
as greedy as critics are hammering the company to be. In fact, some analysts
believe that the company’s pricing of the iPhone X is just and fair, as it
might be raking in a smaller profit margin as opposed to the
previous-generation models.
Total Cost of iPhone
X Components Is Leading Apple to Obtain a Smaller Profit Margin, Claim Analysts
The estimated cost of components for the iPhone X is
believed to be higher, and despite the exorbitant price, Apple is said to be
taking in small profits as opposed to last year’s iPhone 7, according to
analysts’ remarks based on WSJ’s latest piece (via 9to5Mac).
“The starting price of the new flagship iPhone X is about
50% more than the $650 starting price of last year’s iPhone 7 [but] the
components cost an estimated $581, up from $248 for components in the iPhone 7,
according to Susquehanna International Group. The gap suggests Apple’s profit
margins on the new device are slimmer than on existing lines.”
We have to take this information with a pinch of salt for
now because if even a meticulous teardown is carried out of the iPhone X
(irrespective of how difficult it ends up being), nobody except Apple and
suppliers will know the price negotiated by the tech giant.
However, you should still be informed that with Apple
relying on Samsung for its OLED screens, a previous analyst states that the
Korean tech firm was charging Apple between $120-$130 per display component,
which obviously led to this price increase.
