Bitter Reality About Apple's Profit Margin

Dirty Reality About Apple's Profit Margin

Every year, following the release of the latest iPhone, we roll out a list of components and their individual cost showing how much they actually cost to build. For this year, we’re looking at the iPhone XS Max first, the most expensive iPhone ever.

According to TechInsights, the 256 GB Apple Phone costs around $443 to Developed, when you add up the expense of segments together. Compare that and its expense in the market, which is $1,249, or an astounding $806 higher than what its parts cost.

Unpleasant  Reality About Apple's Profit Margin

As you'd expect, the main part of the cost originates from the presentation, which costs marginally more than a year ago at $80 (a year ago's expense $77). This is in spite of it being greater than previously. Apple spared a bit, $10, by evacuating a few parts related with 3D Touch, which helped keep the expenses somewhat lower. 

Next is the processor/modem unit, which costs $72, $6 more than a year ago. The A12 Bionic is the principal versatile processor to be based on 7nm, with the goal that's normal. 

Capacity costs $64, however, as we told as of late here's the place Apple makes a main part of expanding returns for a less increment in cost. The camera setup is next at $44.

Naturally, the cost only includes that of components needed to manufacture the phone, and not secondary ones such as supply chain, after-sales support, etc.
Still, the hefty profit Apple makes is clear as ever, with the phone starting at $1099 for the base model and $1249 for the 256 GB variant which was tested here.

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