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IHS chart shows how much the iPhone X costs to produce compared to previous models

IHS graph shows how much the iPhone X costs to produce compared to previous models (Image source: Apple)
IHS graph shows how much the iPhone X costs to produce compared to previous models (Image source: Apple)
The iPhone X costs almost 2.5x more than the original iPhone SE in materials alone which coincidentally matches the 2.5x retail price of the Apple flagship.

The bill of materials (BOM) for Apple iPhones has always been a popular topic whenever a new model is released. The Cupertino company is frequently accused of overpricing its products and many users are curious to see just how much it costs for the company to manufacture these Holiday must-haves.

Market research firm IHS knows this very well and has produced a graph comparing the estimated BOM from the 2011 iPhone 4s all the way up to the current 2017 iPhone X. The data offers an interesting perspective as to why the iPhone X is as expensive as it on store shelves.

According to the estimates, the iPhone X is the costliest model Apple has ever produced at about $370 USD whereas nearly every other iPhone before it was under $250 USD in both materials and production during their respective launch times. When compared to the standard iPhone 8 model, for example, the iPhone X is roughly 37 percent costlier in parts alone. Whether or not this justifies the $300 USD markup between the base iPhone 8 and the base iPhone X is a subjective matter.

The iPhone X BOM estimate reached by IHS is similar to other independent estimates made by different sources. A manual teardown performed by Tech Insight and Reuters had estimated production costs to be just $375.50 USD while Chinese B2B tracker ichunt.com had estimated $412.75 USD for the pricier 256 GB SKU based on key suppliers and the list of materials. Unsurprisingly, the unique OLED panel and Face ID camera both play a major part in skyrocketing the price of the iPhone X for consumers as well as for Apple.

(Source: IHS Germany)
(Source: IHS Germany)

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2017 11 > IHS chart shows how much the iPhone X costs to produce compared to previous models
Allen Ngo, 2017-11-22 (Update: 2017-11-22)
Allen Ngo
Allen Ngo - US Editor in Chief
After graduating with a B.S. in environmental hydrodynamics from the University of California, I studied reactor physics to become licensed by the U.S. NRC to operate nuclear reactors. There's a striking level of appreciation you gain for everyday consumer electronics after working with modern nuclear reactivity systems astonishingly powered by computers from the 80s. When I'm not managing day-to-day activities and US review articles on Notebookcheck, you can catch me following the eSports scene and the latest gaming news.