Apple’s iPhones are getting more expensive every year and 2018 is no different with the launch of the $1099 iPhone XS Max. A lot of people wonder why the company charges so much for its devices and a new report provides some answers.
TechInsights cracked open a 256GB iPhone XS Max to take a look at its components and figure out just how much it cost Apple to make. Turns out, the firm spends about $443 to produce the massive phablet. This particular storage variant retails for $1249, so that’s an $806 premium.
Why The iPhone XS Max Is So Expensive
This seems huge at first glance, but it’s important to remember that raw assembly costs don’t take into account various factors like research and development, software, advertising, marketing, and distribution. Even so, it’s quite a lot to ask for and Apple is likely making a tidy profit.
As a comparison, the $999 iPhone X costs about $395 to make. The iPhone XS Max is thus around $50 more expensive to produce. This makes sense considering it has a larger 6.5-inch OLED display. The panel is actually the most expensive part of the smartphone, priced at approximately $80.5 only.
The iPhone X’s 5.8-inch OLED screen costs Apple roughly $77.27 all told. It’s not immediately clear if Samsung or LG manufactured the display. The iPhone maker reportedly split panel orders between the two, but hasn’t confirmed these rumors publicly.
The report thinks that Apple reduced up to $10 in screen costs this year by eliminating some 3D Touch components which were present in the iPhone X. It’s somehow managed to do this without actually taking 3D Touch away from the iPhone XS Max.
The second most expensive part of the iPhone XS Max are the A12 processor and modem at about $72. The latter is definitely Intel-made, confirming talk that Apple had switched over completely to the chip maker and ditched Qualcomm in the process.