Monday, November 6, 2017

The iPhone X has a component cost of $ 357, apparently more profit margin

Apple usually has a fairly simple way to work as soon as you decide the price of your devices; it simply adds a margin generally equal to all of them, above the cost of manufacturing, components, software, transport or research and development, among others.
This may seem obvious, but it is not so obvious, because many companies artificially lower the price of their products deliberately, often losing money with each unit sold, because that way they get a market share that monetize later and, finally, get profits. It was commonplace, for example, in the world of video game consoles ... Sony, was years losing money with the PS3 until it was cheaper to manufacture. Apple, however, has never done this ... from the first Lisa or Macintosh that they sold more than 40 years ago, to the iPhone X, they have always had a benefit for every device sold. As the iPhone X is the most expensive iPhone sold so far, we wonder if that margin is the same as they have fixed with previous iPhone models. The answer, always approximate, is given by TechInsights (via Reuters ), which has calculated the price of the 64GB iPhone X components. In total, it's $ 357.50 .
This price, is not the cost of the iPhone X. Apple costs a lot more money to manufacture an iPhone X, because there is not included the price of assembly, design, transportation, packaging, thousands of programmers who get that iOS works, marketing ... but, at least as a guide and comparing with previous models of iPhone, that cost of components leaves a margin of 64% since it sells for $ 999.
If we do this same account with the components and price of an iPhone 8, the result is a margin of 59%, lower than the iPhone X.
We repeat, the margin of Apple is not so wide in any case, although surely, is the broadest in the mobile phone industry. It is very likely that this difference of 5% of approximate profit margin, is due for example to the investment of hundreds of millions that Apple has needed to do to get miniaturize and operate the facial recognition system of a Face ID on the iPhone X , or to make your motherboard considerably smaller. It is something very difficult to achieve even if you have money to do it ... for that reason, only Apple has made Face ID really useful, while other companies include it in their star smartphone even though they can be fooled with a simple photo 
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