Apple's products are known to be expensive, but the latest iPhone X has set a new benchmark altogether. With over $1,000 or Rs 1 lakh a pop, Apple has hit a new high on the pricing front. The prices might go up over time as succeeding models bring more upgrades.
With the debate on the selling price of the iPhone X raging on, many wonder if the premium price tag is justified. Apple has probably brought the biggest upgrades to a smartphone in recent history.
If you're an avid smartphone user and doesn't mind spending a lakh, then iPhone X is your go-to phone. From an edge-to-edge display to one of the best performing configurations and incredible camera, iPhone X makes a compelling case in the premium smartphone category.
But has it occurred to you how much Apple spends on manufacturing an iPhone X or simply put the BOM (Bill of Materials) cost of an iPhone X. We'll get to that in a bit, but let us share the official iPhone X prices first.
Apple iPhone X comes in two variants – one with 64GB and another with 256GB. The base model costs $999 internationally and Rs. 89,000 in India. As for the higher-end variant, buyers must shell out $1,149 in the US and Rs 1,02,000 in India. Indians pay 39 percent more for an iPhone X.
But let's keep that debate for another day and get to the heart of the matter.
Would you believe if we say the BOM cost of an iPhone X is roughly Rs 22,000? A report from ZDNET suggests the BOM cost stands at over $330.
But the cost of the expensive iPhone X's display (about $100-$120), along with all that hardware associated with the Face ID technology, could easily place the BOM cost of the phone at over $330. It is not entirely surprising as Apple has followed this practice on all of its iPhones.
Usually, the BOM cost for Apple products is around a third of the retail price. For instance, the manufacturing cost of the iPhone 7 is $220, but Apple sells it for $649.
But it is unfair to judge Apple for charging more than three times the actual cost for its latest iPhone X. The BOM cost only indicates how much Apple spends to manufacture its latest flagship. But there's more to it than meets the eye.
It is not a surprise that Apple spends a fortune on R&D and also has a massive marketing budget, and need we mention the multi-billion-dollar brand value that comes with each Apple product. Even with all that, Apple also has a generous profit margin. That way, a $1,000 or Rs 1 lakh for an iPhone X is not quite ridiculous, but it is still one pricey piece of hardware when there are alternatives like Samsung Galaxy Note 8.
