Home Mobile devices iPhone XS Max sold for almost three times the cost: claim
iPhone XS Max sold for almost three times the cost: claim Pixabay

Apple spends just US$443 (A$610) on the components for its iPhone XS Max (256GB) and sells it for US$1249 (A$1721) in the United States, according to a teardown by the Canadian firm TechInsights.

In Australia, the sale price for the 256GB model is A$2049.

The breakdown of costs did not take into account how much was spent on research and development, or marketing.

TechInsights compared the iPhone XS Max to the iPhone X to see the difference in costs; in its estimates, the iPhone X components tallied US$395.44.

The display was the single most expensive part for the iPhone XS Max, coming in at US$80.50, while applications, processor and modems came in at US$72.

The breakdown given by the company was as under (all US$;, the first figure is for the iPhone XS Max and the second for the iPhone X)

  • Applications Processor/Modems    $72.00    $66.22
  • Battery    $9.00    $6.46
  • Connectivity and Sensors    $18.00    $17.11
  • Cameras    $44.00    $42.80
  • Display    $80.50    $77.27
  • Memory    $64.50    $45.35
  • Mixed Signal/RF    $23.00    $23.31
  • Power Management/Audio    $14.50    $14.16
  • Other Electronics    $35.00    $32.51
  • Mechanicals/Housings    $58.00    $45.71
  • Test/Assembly/Supporting Materials    $24.50    $24.55
  • Total    $443.00    $395.44

In its commentary, TechInsights said: "Some of the increases in cost from the iPhone X to the iPhone XS Max are in the areas of baseband, larger OLED display, larger battery, more non-volatile memory, and a significant increase in the cost of non-electronic components.

"The iPhone XS Max has larger, heavier housings than the iPhone X, and the internal frame carries more process costs around spot welds, inserts, etc.

"The OLED display in the iPhone XS Max is larger, increasing its cost, but that increase is tempered by the removal of some of the 3D touch components that were previously found in the iPhone X."

It also added a note about how it had done its costing: "All cost estimates provided here are compiled using information available to us at the time of the initial teardown. Some assumptions have been made where concrete data is not yet available."

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Sam Varghese has been writing for iTWire since 2006, a year after the sitecame into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

 

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