The Cost Of iPhone XS Max: Does It Make The Price Look More Awful?

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme...

Cloud Computing is Redefining the Education Industry!

Today, the benefits of cloud computing are being recognized in educational industries around the world. Most of...

The newly released iPhone XS and iPhone XS Max are now beginning to find their feet in the smartphone market. While the price of iPhone XS and iPhone XS Max has been a point of debate so far, it’s is interesting to find the cost of iPhone XS Max to understand what it takes for Apple Inc. (NASDAQ:AAPL) to market and pocket. Thanks to the recent revelations from Techinsights, we get a lot more insight into that very aspect.

The Real Cost of iPhone XS Max

TechInsights is an Ottawa Ontario based firm which specializes in dismantling smartphones and analyzing its components. They provide an approximate manufacturing cost of the smartphone and the iPhone XS Max underwent the same process. The firm reported that for 256 Gb variant, the total cost of iPhone XS Max clocks around $443, which includes all the parts and assembly cost as well.

Out of all the components, it was the 6.5 inch OLED display which took a major chunk of the cost of iPhone XS Max. According to the report, the display of iPhone XS Max alone cost Apple about $80.50. Other costs which made up the $443 include the smartphone’s processor and modem chips.

Advertisements

Apple decided to venture into new chip-making techniques with Intel Corp (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing Co. Ltd. This allowed them to increase their performance while taking up the same amount of space. However, the new modem chips have come under public scrutiny lately, with complaints from new adopters regarding Wi-Fi and LTE connectivity issues.

iPhone XS Max vs iPhone X

When the cost analysis of the iPhone XS Max is compared with the same of iPhone X, there were many interesting learnings. The erstwhile iPhone X cost around $395 in parts and assembly costs. The 5.8-inch display of iPhone X cost Apple an estimated $77.27.

When compared to the huge 6.5 inch OLED display of iPhone XS Max, the iPhone X display does seem quite small. But surprisingly, the iPhone X display costs only about $3 lesser than that of the iPhone XS Max to make. This is a relatively marginal increase in cost with respect to a relatively large increase in screen size and quality.

When quizzed about it, TechInsights revealed that Apple has removed a few components in the new models which contributed to the ‘3D touch system‘. These new components would have cost around $10 more. This would have taken up the cost of iPhone XS Max’s display alone past $90. However, Apple refused to comment on the above information.

Cost vs Price of iPhone XS Max: Profit Guaranteed

The seemingly exorbitant pricing strategy adopted by Apple has always been questioned by users and reporters alike. It is also believed that Apple is, in fact, trying to tackle a global smartphone industry slowdown through its policy of raising iPhone prices, offering new digital services and maximising profits from each component. When questioned about the exorbitant pricing of the new iPhones, Tim Cook defended it. He stated that they were trying to make “an iPhone for everyone“. He further went on to talk about the value brought into play through their products.

Advertisements

Not sure what Tim Cook was up to with his statement on price, but the huge difference between cost and price of iPhone XS, indicates that Apple is no mood to compromise with its profit margins despite the slowdown in the global smartphone industry. It’s reported that Apple secures 40% – 42% as a net profit margin from the sales of each iPhone unit. The increasing competition is forcing Apple to invest more money in branding and advertising of iPhone which may have a direct impact on the company’s profit margin on iPhones.

Whatever may be the situation, it would be interesting to see that with such a difference between cost and price of iPhone XS Max, how the sales of iPhone XS Max will fare by the end of this year.

SourceReuters

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

PAN-Aadhaar link: 32.71 Crore Indians Can Now Reap the Benefits

The agenda to link every citizen's Aadhaar card with their PAN card has been on the Indian...

When A City Had To Pay Ransom To Cyber Criminals!

While the rapid advancement in technology surely did gift us with newer and more powerful devices, be it smartphones or iPads, it...

Can Twitter’s New Feature Really Make You Feel Safe?

Twitter has been on what seems like a campaign to make the site a place for more meaningful conversations among users. Ever...

TikTok Acquisition: Not A Cake Walk for Microsoft

After President Trump announced an order banning US companies' transactions with Chinese businesses, which is set to come into effect 45 days...

Can ‘Made In India’ Twitter Alternative Replicate Twitter’s Success?

The popular microblogging platform Twitter has a new Indian clone and it is all set to capture the non-English users in the...

TikTok Stars Are Fighting an Uphill Battle

2020 has proven to be a difficult year for many Chinese-origin apps, including the wildly popular short video app, TikTok. Many Chinese...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This