Fans queue up at the iPhone X launch in Tokyo, Japan © AFLO/Press Association Images
Fans queue up at the iPhone X launch in Tokyo, Japan © AFLO/Press Association Images

$999 iPhone X components cost $370

Will Green is news editor of Supply Management
17 November 2017

A teardown of the new iPhone X shows materials in the 64 gigabyte (GB) device cost $370.25.

IHS Markit said the phone, which has a starting price of $999, is $50 more expensive than the previous most expensive phone, the iPhone 8 Plus 256GB.

By comparison, Samsung’s Galaxy S8 with 64GB of memory has component costs of $302 and retails at around $720.

Andrew Rassweiler, senior director of cost benchmarking services at IHS Markit, said: “The iPhone X is the most expensive iPhone ever made, and it has the highest retail price tag of comparable flagship phones, catapulting the smartphone industry to an entirely new price point.”

IHS Markit said it believed Apple was maintaining its typical hardware margins but the gross margin on the iPhone X “may increase over time as manufacturing yields improve”.

The analysis said the phone’s screen and facial recognition technology set it apart from previous devices.

The teardown estimated the iPhone’s Face ID system, which uses technology called TrueDepth to unlock the device, cost $16.70. Its components are supplied by Sony/Foxconn, Texas Instruments, ST Microelectronics, Finisar and Philips.

Jérémie Bouchaud, senior director for micro-electrical mechanical systems and sensors at IHS Markit, said: “It’s a complex assembly that uses components from many suppliers.

“The assembly and testing of the TrueDepth system and its individual components is challenging and likely a factor in the production delays.

“For instance, the assemblage and test of the Texas Instruments and ST Microelectronics subsystem for the flood illuminator is far from trivial and requires a high number of test equipment pieces.”

The active matrix organic light-emitting diode (AMOLED) display, supplied by Samsung, cover glass and the Force Touch sensor, which reacts to the pressure of touch gestures, cost an estimated $110.

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