Earlier this month at the Gather Round media event, Apple unveiled three phones to the delight of their loyal users and iPhone XS Max Costs:
Based on the hierarchy of cost between all three phones, TechInsights an Ontario-based firm examined the iPhone XS Max Costs. The firm which boasts of five in-house teardown laboratories took a look at the construction cost and the cost of the parts of the 256GB version of the phone.
With about $800 below the widespread retail price, the firm came up with $443 as the final figure for both parameters examined. Worthy of note is the fact that the estimated bill of materials doesn’t take into account the full expenditure accrued in the development of an iPhone.
More so, the wealth of Research & Development is a lot to mention. Both the software and the phone’s internals are produced in-house as both are the special recipe for the sauce called iPhone.
Display screen: At about $357.50 per unit, TechInsights analyzed the discontinued iPhone X at the retail price of $999 a week. On a comparative basis, both iPhone XS Max and iPhone X boast of expensive OLED display at individual costs of $80.50 and $77.27. These bring the display as the component with the highest cost.
While iPhone X boasted of a 5.8-inch display, the new iPhone XS Max is said to have a screen display of 6.5-inch – a property that justifies the impressive rise in price.
Al Cowsky of TechInsights mentioned that the luxury phone company toned down on cost by eliminating components with 3D Touch. For this reason, the initial cost of $80.50 for the screen will get an additional $10 if the 3D component were retained. This, he said, would be a trade-off in cost.
Chip: Another component that heightened the manufacturing cost would be the first 7nm chip in handset – the A12 Bionic chip.
Miscellaneous: While research and development would accrue the highest fraction of the cost, shipping, warehousing, and marketing are branches that upped the price as well. However, bill of materials as mentioned by Tim Cook is not always very accurate. The boon with the new merchandise is the screen resolution which many Apple users appreciate regardless of the ridiculous retail prices. Over its launch weekend, the new merchandise outsold its predecessor – iPhone XS up to four times.
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