That $1,000 iPhone X actually costs about $370 to make, report claims

Saving for an iPhone X? Perhaps you’ve sold a car or taken an extra job to finance the ultra-expensive new Apple phone?

Well, you’ll probably be disappointed to know that the $999+ iPhone X actually costs around $370 to produce, according to IHS Markit.

The business intelligence company’s engineers have torn down the iPhone X and estimated that the 64GB variant of the device is made of $370.25 worth of materials.

This makes the iPhone X the most expensive phone to make. According to IHS Markit, it’s $50 more expensive than the 256GB iPhone 8 Plus. By comparison, a 64GB Samsung Galaxy S8 is only made of $302 worth of materials.

Of course, the “bill of materials” does not include costs like R&D and marketing, which are considerable, especially for a new, forward-looking device such as the iPhone X. IHS Markit says that Apple has likely maintained its “typical” hardware margins for the iPhone X.

IMAGE: IHS MARKIT

 

The report offers some insight on the cost of individual components. For example, the iPhone X’s TrueDepth 3D sensor system costs $16.7, while the phone’s 2435×1125-pixel OLED screen, together with the cover glass and the Force Touch sensor, costs $110, according to the company.