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iPhone XS Max component costs revealed

The iPhone XS Max (left) is estimated to cost Apple US$443 each in components. (Source: Apple)
The iPhone XS Max (left) is estimated to cost Apple US$443 each in components. (Source: Apple)
If there’s one thing that matches the size of the new iPhone XS Max models from Apple, it is their price. If you want to know how much money of yours the Cupertino giant is sticking straight into its bank account, read on. If you don't, it might be best to look away.

The folks over at TechInsights have been doing some digging into the individual component costs for the iPhone XS Max 256GB model, which early sales suggest is proving to be the pick among consumers. As you might expect, the monster Samsung-supplied OLED display is one of the single most expensive components in the device at US$80.50 each, helping to tip the overall raw component cost of the iPhone XS Max to US$443. The device, of course, retails for a whopping US$1299, or up to US$1499 for the 512GB variant.

Other significant component costs in the iPhone XS Max include the A12 Bionic chip and modems, which come in at US$72. Flash storage costs US$64 while the “surgical grade steel” housing costs US$58. The camera modules total US$44. It is not entirely clear exactly how much net profit Apple makes on each iPhone XS it sells, as we don’t know how much Apple spends on research and development, marketing and so on. Needless to say, it is still taking a healthy slice of the US$1299 cost to consumers.

As a point of comparison, the iPhone 6 Plus from 2014 tipped the scales at US$247 in raw components (not accounting for inflation). This goes some way to explaining the sky-high prices that Apple is charging consumers for the iPhone XS Max, which is costing Apple around US$200 more per device to make. The one figure that has, however, generally remained unchanged is the gross margin that Apple makes off each flagship iPhone sale, which is between 60 to 70 percent. Hence, why Apple continues to make money hand-over-fist.


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iPhone XS Max component costs compared with the iPhone X. (Source: TechInsights)
iPhone XS Max component costs compared with the iPhone X. (Source: TechInsights)

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 09 > iPhone XS Max component costs revealed
Sanjiv Sathiah, 2018-09-26 (Update: 2018-09-26)
Sanjiv Sathiah
Sanjiv Sathiah - News Editor
I have been tech-obsessed from the time my father introduced me to my first computer, an Apple ][. Since then, I have grown to enjoy exploring and experimenting with any computing platform that I can get my hands on – I am the definitive early adopter! I have always been interested in how we can use technology to shape and improve our lives, most recently using it to record, mix and master my debut record, Acuity – Nature | Nurture out now on Spotify.