iPhone X: Although it costs more, it offers lower profit margins for Apple

The iPhone X is very expensive, yet it is the smartphone that offers less profit margins to Apple. The cost of the components needed to produce it is indeed very high.

The Wall Street Journal has released its own analysis, comparing the cost of production of the iPhone X with the previous ones and hence the profit of Apple.

The basic model of the iPhone X costs about 50% more than the base cost of an iPhone 7 last year (about $ 650), however, the price of the components is around $ 581, which represents more than twice the 248 $ of the components of iPhone 7.

All this suggests that Apple’s profit margin for the sale of any iPhone X will be less than what the company perceives with the sale of every single iPhone 7.

The truth will be discovered after the first quarter when Apple releases official sales data. Meanwhile, we can say that the iPhone 8 has not been a big hit since the smartphone was still available for purchase late in the afternoon of September 15th. Usually pre-orders are sold out in minutes but in this case they served several hours before the first stock expires.

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