Is the price of the iPhone Xs Max justified? What the Component Analysis Says

This will be the next iPhone: capable of recharging other devices and all with OLED screens

It seems that once the four-digit psychological barrier is broken, smartphone prices are rising indiscriminately. Of course, it is no less true that we are also receiving more than ever.

Today’s devices have cutting-edge technologies that just a few years ago would have been a matter of science fiction. However, for many users it is difficult to justify prices such as the 1,259 that the iPhone Xs Max costs to enter; a price that can reach 1,659 if we opt for the 512 GB version.

For some, paying so much for a mobile phone is crazy. For others, it’s just the right price to get one of today’s most advanced products. But is that price really justified? How much does it cost Apple to produce an iPhone Xs Max, compared to the money it asks for?

How much does it cost to produce an iPhone Xs Max

Tech Insights has been able to take apart an iPhone Xs Max and discover its secrets; among which is the cost of all components. And the somewhat surprising revelation is that producing an iPhone Xs Max hardly costs a little more than an iPhone X.

If we analyze each part separately and add up its costs, we see that producing a 256 GB iPhone Xs Max costs $ 443; that’s just $ 47.56 more than the iPhone X cost to produce. Considering the big leaps in screen size and the use of new chips like Apple’s A10 processor, having so little difference is something remarkable.

There are many reasons why the Xs Max’s costs have not skyrocketed despite these improvements. One of them is that the Xs Max is basically a vitamin X; the arrangement of the components is identical, so Apple didn’t have to reinvent the wheel precisely. Everything is where it was before, only now it is bigger.

The other reason is that manufacturing costs have dropped this year; After all, the technology that was cutting edge a year ago is now more common, and it costs less to manufacture. In addition, Apple has cut where it could and it is not evident.

For example, the screen is more expensive (and the part that costs more to produce the device) because it is larger; But Apple has saved about ten dollars by eliminating some components related to 3D Touch. The Xs Max still has 3D Touch; But this is a technology that is on the way to being abandoned by Apple: the Xr does not have it and iOS 12 has added shortcuts for devices without 3D Touch.

What does this mean?

Another detail that Apple makes a lot of money with is storage. There is a difference of 350 dollars between the 64 GB model and the 512 GB one; And Apple takes a good part of that difference in its pocket.

Before you jump to conclusions, we have to clarify that This does not mean that Apple earns $ 650 with each iPhone. That’s just the cost of the components, and doesn’t factor in many other investments that have been necessary to make the device a reality; from R&D to design, through marketing or distribution.

Only Apple knows for sure how much it takes with each device; Despite everything, it is a good indication that Apple is not exactly taking risks with the Xs Max. And that the price has been carefully chosen, because he knows that people buy it.

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