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