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The iPhone X is Apple’s most expensive mass-consumer smartphone yet, with a price tag starting at $999. In comparison, the iPhone 8 only costs $699. Analysts recently looked into these price discrepancies and noticed that the iPhone X is actually cheaper to make than the iPhone 8 by adding how much the parts cost.
The analysis was done by TechInsights, which was then reported on by Reuters. According to their findings, when added all together, the parts of an iPhone X only adds up to $357.50 to make the device. In comparison, the 256GB version of the iPhone 8 costs $367.50 to make. That’s a 64 percent gross margin for the iPhone X compared to the 59 percent of the iPhone 8.
So far, Apple has made no comments with regards to the analysis that TechInsights made, which is no surprise. The Cupertino firm has always been able to get away with charging exorbitant prices for its products, which its dedicated fanbase has never failed to consume in copious amounts. According to the analyst that did the costing, Al Cowsky, Apple’s size and influence allows it to charge however it wants.
“Apple can be different here because they are the 800 pound gorilla,” Cowsky said.
There is also the matter of Apple CEO Tim Cook previously saying that the price of the iPhone X is determined by the value of the device, CNET reports. Even so, selling a $999 device that only costs $357.50 to make is a huge markup.
This revelation becomes even more frustrating considering how the iPhone X is now considered the most fragile iPhone yet. Test after test has shown how even a drop at three feet in height is enough to crack the glass body of the phone. With Apple asking so much for such a brittle smartphone, it does merit some raised eyebrows, at the very least.
