According to the iPhone XS Max component cost estimate, less than half the purchase price is spent on device manufacturing. This was Apple's most expensive mobile phone, probably the most profitable mobile phone.
Storage costs have risen considerably, but Apple was able to cut costs by removing some of the 3D Touch components from the display.
Analyst firm TechInsights disassembled the iPhone XS Max with 256 GB of storage. It is reportedly the most popular version of Apple's best-selling mobile phone.
TechInsights estimated the cost of each component as part of the teardown. The total is $ 443 compared to the product's $ 1249 price list. Therefore, only 35% of the purchase price will be paid to the actual hardware.
Of course the remaining $ 806 is not net profit. Bill of Materials (BoM) does not include salaries, advertisements, and other expenses of Apple employees. In addition, BoM does not include software. Also, iPhone and iPad sales must cover the cost of developing iOS and its bundled software.
Still, Apple is a very advantageous company. Profit in the fourth quarter was $ 11.5 billion.
Maximum component cost of iPhone XS
TechInsights compares the component costs of iPhone XS Max and last year's iPhone X. The new model is bigger and the price is $ 100 higher but BoM is only 47.56 dollars.
Many components are almost the same even on the screen. Analysts said, "iPhone Xs Max's OLED display is big and its cost is increasing, but the increase has been relaxed by deleting some of the 3D touch components previously found on iPhone X." . As a result, this component cost only ranged from $ 77.27 to $ 80.50.
One of the biggest increases is 256 GB of storage. TechInsights estimates that this has changed from $ 45.35 to $ 64.50.