About 60% of the price of an iPhone 13 Pro goes into producing it, according to a analysts’ estimate. That figure comes from examining the cost of each component in Apple’s new high-end smartphone. It’s much more than Apple used have to pay.
And note that the rest of the selling price isn’t pure profit.
Apple COO Jeff Williams says the company is “very aware” of concerns over the rising cost of the iPhone and Mac computers.
Williams, who delivered a brief speech at Elon University in North Carolina on Friday, also disputes analysts’ estimates of component costs for Apple’s products. (Results of a recent teardown suggested a 256GB iPhone XS Max can be manufactured for just $443.)
An estimate of the component costs for each iPhone XS Max shows that much less than half of the purchase price goes to producing the device. This is Apple’s most expensive phone ever — and likely its most profitable.
The cost of storage went up considerably but Apple managed to save money by removing some 3D Touch components from the display.
The iPhone is lagging behind competitors in China. But if Apple notices a sudden uptick in sales, they may have an old friend to thank.
At a tech conference in the Guangdong province of China Tuesday, Apple co-founder Steve Wozniak praised Chinese manufacturers for making smartphones with great functions and affordable prices.
But Woz said the iPhone is still worth the extra money.
Next week, the iPhone will launch on three additional U.S. regional carriers. This move follows last month’s roll out to five regional carriers plus last year’s addition of C Spire and Puerto Rico-based Claro Puerto (Apple’s first deasl with regional carriers).
Apple’s regional expansion prompted Morgan Stanley analyst Katy Huberty to issue a note to investors saying that the new partnerships will help ensure sustained iPhone growth. She also noted that she doesn’t expect to see carriers dropping subsidized pricing for the iPhone – a concern that has also made investors hesitant when it comes to Apple.
