The iPhone X has received a lot of attention for its higher price point – it’s the most expensive iPhone ever sold by Apple, coming in at $999 for 64GB and $1,149 for 256GB. Today, new data from research firm TechInsights offers a closer look at what specific iPhone X parts are driving that higher price…
As noted by Reuters, the entry-level iPhone X costs Apple around $357.50 to make. Apple sells that model for $999, meaning it reaps a gross margin of 64 percent. That number is slightly higher than the iPhone 8, which Apple sells for $699 at a gross margin of 59 percent.
Breaking down the iPhone X part-by-part, the new 5.8-inch OLED display is the most expensive piece of the device. That part costs Apple around $65.50, compared to $36 for the 4.7-inch LCD display on the iPhone 8. As you would expect, this is largely due to the OLED technology used in the iPhone X’s panel.
The stainless steel chassis also represents a decent chunk of Apple’s iPhone X cost. Here, you’re looking at $36 for the stainless steel design of the iPhone X, versus $21.50 for the aluminum housing used in the iPhone 8.