So the new iPhone XS Max has just been released and is poised to continue the never-ending stalemate between Apple and Android. Oh, and it also came with a price tag of $1250, just when you thought that last year’s iPhone X with a thousand-dollar price tag wasn’t outrageous enough. However, you might want to practice some consumer wisdom and hold off on purchasing it, as its cost might have been blown out of proportion.
A recent estimated breakdown of the price for the materials of the iPhone XS revealed that its manufacturing cost came up to only $443, thanks to TechInsights. The most expensive component was the display at $80.50, then the chipset $72.00, and third is the RAM at $64.50 with everything else following closely behind. So it pretty much retails for the nearly thrice its manufacturing cost.
However, there are additional costs, like marketing, factories, and engineering among other things. However, the iPhone XS’ competition from Samsung right now is the Galaxy S9, it has arguably comparable specs and retails for $720 with a manufacturing cost of $379, less than double, taking into consideration marketing and other company costs. What’s interesting is that Samsung also supplies some mobile phone parts to its rival Apple through subsidiaries, particularly the OLED display.
While the manufacturing cost of the new iPhone XS is just an estimation and by no means official, it would seem that Apple is trying to get away with the huge price tag. Meaning when you buy an iPhone XS, the majority of what you are paying for could be just the name and branding (who would have thought?) instead of the actual phone. But hey, it’s ultimately up to you where you spend your money as a consumer, even if you think a brand name should be that expensive.