The iPhone XS Max with 256GB storage is estimated to cost Apple $443 (or approx Rs 32,195) to manufacture, according to a teardown report from TechInsights. As expected, the Samsung-supplied 6.5-inch OLED screen is the most expensive component used in the device at $80.50 (Rs 5,853) each. Apple is selling the 256GB model of the iPhone XS Max at a price of $1,299 (Rs 94,466) in the US.
Other significant component costs in the iPhone XS Max include the A12 Bionic chip and modems at $72 (Rs 5,235), Flash Storage costs $65 (Rs 4,725) while the “Surgical Steel’ frame costs $58 (Rs 4,216), Though keep in mind that the analysis is merely based on current market value of components. This, of course, does not include Apple’s spending on marketing, advertising, the cost of creating iOS 12, research and development and so on.
“All told, what they took out adds up to about $10, so this $80 estimate would have been about $90,” Al Cowsky, who oversees cost analysis at TechInsights, told Reuters in an interview. “They had a trade-off in cost.”
The Bill of Materials (BOM) cost for the iPhone XS Max is $443 (Rs 32,195), representing a hike of $50 (Rs 3,636) over last year’s 64GB iPhone X. Interestingly, though, the raw component cost of making the iPhone XS Max is marginally high compared to last year’s iPhone X. Despite that, the iPhone XS Max retails for $1,299 (Rs 94,466), making it Apple’s most expensive smartphones to date.
There is no doubt that Apple is minting more profits by increasing the price of its flagship smartphones. Even though the company is the third-largest smartphone maker in the world (behind Samsung and Huawei), it ranks in the most profits out of all the key manufacturers.
Apple iPhone XS Max alongside the iPhone XS will go on sale in India on September 28. The iPhone XS Max and iPhone XS are priced at Rs 99,900 and Rs 1,09,900 respectively for the base versions.