Apple is often accused of cheating the prices on their smartphones. Most people think it’s impossible that, although a cool but quite ordinary-looking phone can really cost a thousand dollars. They think that Cupertino’s manufacturer artificially inflate the retail price of branded phones, so as to create a halo of premium segment devices around them. From year to year, topical media add fuel to the fire, publishing an inaccurate information about the new iPhones’ cost, which in fact turns out to be only the approximate cost of all the components that make up a smartphone. This year, TechInsights didn’t change itself again (Apple iPhone 11 Pro Max Teardown) and calculated how much all the iPhone 11 Pro Max components with a 512 GB memory capacity could cost.
This year, unlike all the previous ones, the most expensive component of the flagship iPhone was not its display, which used to be the leader in cost, but a triple camera system. TechInsights experts rated this system at $73.5. It’s almost 40% more expensive than the iPhone XS Max. Obviously, an extra lens with an ultra-wide viewing angle is really so expensive.
How much does the iPhone 11 Pro Max display cost?
But the display of the iPhone 11 Pro Max was cheaper than last year’s model. Either the lack of 3D Touch affected, or the company’s decision to purchase the Samsung’s display matrices of own development, but one way or another, this year Cupertino saved a lot of money on the screen without losing the quality of the picture. It’s scary to think, but only two years ago Apple spent about $80 on the iPhone X display.
Apple also managed to save a little money on the processor. Despite increased productivity and energy efficiency, the price of the A13 Bionic was estimated at $64 compared to $66 for the A12 Bionic. Someone will say that this is a small difference, but keep in mind that saving $2 on one smartphone turns into millions of dollars on a whole batch, the volume of which Apple measures in eight-digit numbers.
How much do the iPhone 11 Pro Max components cost?
- Applications Processor – $64.00
- Baseband Processor – $25.50
- Battery – $10.50
- Camera / Image – $73.50
- Connectivity – $10.50
- Display / Touchscreen – $66.50
- Memory: Non-Volatile – $58.00
- Memory: Volatile – $11.50
- Mixed Signal – $1.50
- Non-Electronics – $61.00
- Other – $21.00
- Power Management / Audio – $10.50
- RF Component – $30.00
- Sensor – $1.50
- Substrates – $16.50
- Supporting Materials – $7.50
- Final Assembly & Test – $21.00
Total – $490.50
Thus, the total cost of the components used in the iPhone 11 Pro Max with 512 GB production is approximately 490 US dollars. This is $50 more expensive than the iPhone XS Max components were priced, so analysts’ forecast that Apple will be able to reduce the cost of new iPhone manufacturing, apparently, did not materialize. In addition, it is important to understand that this number of dollars has nothing to do with cost. This amount is formed not only by the components used, but also by other expenses such as advertising, software development, research, assembly, and many other factors.
And remember once and for all: cost of components is not the same as production cost!