Apple should be able to generate an awfully nice profit on the sale of each iPhone, if a recent teardown is any indication.
The folks over at TechInsights recently tore apart the iPhone XS Max with 256GB of onboard storage to see what’s inside. It then sought pricing on each of the parts to create a total cost. After performing that evaluation, the company estimated that Apple pays $443 to build each 256GB iPhone XS Max. Apple sells that handset for $1,249, suggesting the company is making an $806 profit on the sale of each device.
Apple unveiled the iPhone XS Max alongside the iPhone XS at a press event earlier this month. The company released the handsets last week. The iPhone XS Max comes with the largest screen size ever in an iPhone, measuring 6.5 inches. The iPhone XS has a 5.8-inch screen. They both run on the A12 Bionic chip and come with improved cameras over last year’s iPhone X.
Of course, Apple making a hefty profit on the sale of each iPhone is no surprise. The company generates billions of dollars in profits each quarter.
For its part, Apple doesn’t discuss how much of a profit it makes on the sale of each handset. And Apple CEO Tim Cook has said in the past that these teardowns are inaccurate and don’t actually reflect Apple’s pricing. But they still serve as an approximation of iPhone components cost in the real world. And if nothing else, they highlight Apple’s unique ability to generate hefty profits on its products.