iPhone X costs you $999 but it costs just $358 to make

With its glass and metal frame, the iPhone X boasts a lot of technologies that analysts have stated is way ahead of the Android smartphone competition, but to experience everything introduced by this technology, you’ll have to spend $999 just to buy the base model of the phone.

Now, while you’re paying $999 for the 64GB model just remember that it is costing Apple a lot less to make because how else would the company make an enormous amount of profit? According to TechInsights, the iPhone X’s component parts set Apple back by $358.50, and the company itself is able to generate a gross margin of 64 percent off the device’s sales. Still, that’s not just the amount of money Apple invests in materializing the phone.

Keep in mind that there are marketing costs, R&D factors and other major variables that cost Apple a lot of money and according to those costs, the manufacturer able to come to the conclusion that by pricing the iPhone X at $999, it will be able to make a substantial amount of profit. As for the breakdown of the costs, the OLED screen, and stainless steel frame add to that overall cost.

The OLED display alone costs $65.50 but the iPhone 8 LCD costs just $36. As for the stainless steel chassis, it costs Apple $36 as opposed to the $21.50 for the aluminum frame belonging to the iPhone 8. While TechInsights did provide a fraction of the information as to why the phone costs $999, there are other components that are costing Apple a great deal of money.

One such example is the TrueDepth camera, which was also one of the reasons why the iPhone X production was struggling for a brief period.

The $999 price tag is probably going to be reduced in 2018 since that would be a smart business move for Apple’s future growth.

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