iPhones Are Expensive: Costs Rs 31,000 to Make an iPhone XS Max, And Apple Asks You Upwards of Rs 1,09,900
At a time when there is a whole debate on why iPhones are expensive, it is a good time to revisit how much it costs to make an iPhone and how much Apple wants you to pay for one.
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Apple current line-up of iPhones, including an update on last year's iPhone X, called the iPhone XS for starting price of $999 (around Rs 99,900 onwards), and the budget-minded iPhone XR that starts at $749 (around Rs76,900 onwards). At a time when there is a whole debate on why iPhones are expensive, it is a good time to revesit how much it costs to make an iPhone and how much Apple wants you to pay for one. We take the example of the iPhone XS Max this time, the largest screen in an iPhone ever. This has a 6.5-inch OLED display. The iPhone XS Max offers the same design as its predecessor but flaunts the second-gen OLED screen from the company. It costs $443 (around Rs30,915) to make. No wonder then, that people aren't rushing to upgrade to the new iPhones, and hence Apple has cut the quarter's revenue estimates.
Last year, Tech Insights in a teardown of the iPhone XS Max with 256 gigabytes of storage capacity suggests that it costs about $443 in parts and assembly costs, compared with $395.44 (roughly Rs. 28,700) for the 64-gigabyte version of last year's iPhone X.
The most expensive component in the iPhone XS Max is its 2nd-gen OLED screen, which coincidentally, is the largest ever in an iPhone at 6.5-inches priced at $80.50. The second most expensive component is the processor/modem that went from $66 in the iPhone X to $72 in the iPhone XS Max, which is a 10% increase. While the camera components reportedly cost Apple $58 and $44 respectively. The smartphone houses a slightly bigger battery, which is valued at $9. However, TechInsights explained the total price of $443 is the pricing of raw components and did not take into account other manufacturing expenses like R&D, software, logistics and more.
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