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iPhone X Costs Apple $370 in Materials, IHS Markit Reveals

Published: Nov 09,2017

(source: iFixit)

Teardown engineers at IHS Markit have completed their preliminary physical dissection of the new Apple iPhone X and found that the model A1865 version of the smartphone with 64 gigabytes (GB) of NAND memory carries a bill of materials (BOM) of $370.25.

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With a starting price of $999, the iPhone X is $50 more than the previous most expensive iPhone, the 8 Plus 256 GB. As another point of comparison, Samsung’s Galaxy S8 with 64 GB of NAND memory has a BOM of $302 and retails at around $720.

“The iPhone X is the most expensive iPhone ever made, and it has the highest retail price tag of comparable flagship phones, catapulting the smartphone industry to an entirely new price point,” said Andrew Rassweiler, senior director of cost benchmarking services at IHS Markit.

“While the iPhone X represents Apple’s biggest step forward in design since the iPhone’s debut in 2007, its underlying architecture is analogous to the iPhone 8 Plus,” Rassweiler said. “Both models share platform-common components, but the X’s superior screen and TrueDepth sensing set the phone apart and contribute to its higher cost.”

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