The iPhone X makes Apple more money per unit than the iPhone 8, according to an analysis that found the iPhone X’s parts cost Apple 25% more than the iPhone 8, but that it retails 43% higher, reports Reuters.
The iPhone X smartphone costs $357.50 to make and sells for $999 (and up), giving it a gross margin of 64%, according to TechInsights, a firm that tears down technology devices and analyzes the parts inside. The iPhone 8 sells for $699 (and higher) and has a gross margin of 59%.
Several of Apple’s design choices for the iPhone X pushed up its price. In particular, its 5.8-inch (14.8 cm) edge-to-edge display and associated parts cost $65.50, compared with $36 for the iPhone 8’s 4.7-inch display, the analysis found. What’s more, the stainless steel chassis of the iPhone X cost $36 versus $21.50 for the aluminum housing of the iPhone 8, says TechInsights.
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