Why Does The Iphone X Cost So Much More?

| November 14, 2017 @ 5:00 am

By Mark GurmanBloomberg

The components in Apple Inc.’s new iPhone X cost $115 more than the guts of the iPhone 8 because of its pricey new screen and facial recognition scanner, according to an analysis by IHS Markit Inc.

The total bill of materials for the base model iPhone X with 64 gigabytes of storage is $370.25, according to IHS’s report, excluding costs like research and development, manufacturing and software. IHS conducted a similar analysis earlier this year of the iPhone 8 base model and found a bill of materials of $255.16.

The iPhone X includes a stainless-steel case, a 3-D facial recognition system on the front and a 5.8-inch OLED screen that aren’t part of the iPhone 8. These components probably drove the extra costs of the company’s 10th anniversary flagship model.The OLED display costs the Cupertino, California, company $110 per unit, compared with $52.50 for the 5.5-inch iPhone 8 Plus screen, which uses an older technology, according to IHS. Samsung Electronics Co. currently supplies OLED panels exclusively to Apple, but the South Korean company pays about $85 per screen for its own Galaxy S8 phone. That device has the same-sized screen as the iPhone X, but with a higher resolution.

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