We all know that the parts that make up smartphones cost a lot less than what we have to pay in stores. Have you ever wondered how much are the components from which this year’s iPhones are made? Analysts valued them at $443.
This year’s iPhones are quite expensive devices. The basic version of the iPhone XS Max with 64 GB memory costs $1,099. For the version with 256 GB we have to pay $1,249, while the 512 GB model costs $1,449. I wonder if there will be someone who will decide to independently build an iPhone smartphone from parts. It could be a profitable business. The necessary components cost only $443 dollars (version with 256 GB of memory). It is only 35.5% of the smartphone price which you have to pay in the shop.
When you buy an iPhone XS, you pay mainly for Apple’s research
Components included in the iPhone XS Max are only about $50 more expensive than those found in the iPhone X. This difference is mainly due to the use of more expensive memory ($19), housing ($12) and chipset ($6). The remaining $13 spread out between the display, battery, cameras and other electronic components. We must also be aware that smartphone makers incur costs related to license fees for used patents, production and distribution of devices, marketing or, finally, software development (in the case of Apple it is an iOS system) and maintenance of the research and development department that designs new devices. Therefore, when buying new equipment, we pay mainly not for the brand, but for the effort that has been put into its development.
Source: Tech Insights