The new flagship phone of Apple’s iPhone X was launched last week. Losing the home button and altering the design was a dangerous move but one that was needed after years of monotony in Apple’s design.
iPhone 8, on the other hand, was a safe bet, with a similar design to the iPhone 6 and iPhone 7.
Apples iPhone X also makes the company more money per phone than the iPhone 8. An analysis found that iPhone X costs just 25% more than the iPhone 8 in manufacturing costs, while it retails at a 43 percent higher price than the iPhone 8.
According to Tech Insights, iPhone X is sold at a gross margin of 64 percent, compared to the 59 percent for iPhone 8. iPhone X costs $357.50 in manufacturing and sells for $999 to $ 1,149. On the other hand, iPhone 8 starts at $699.
According to the Apple’s website, the iPhone X in Space Gray color with 256 GB storage costs $1,149.00 for purchase.
Technology products tend to become more profitable with time as the cost of manufacturing decreases. Al Cowsky, the costing analyst for TechInsights said that
Apple is unique in the electronics industry for its ability to charge a premium price for its latest devices and for its ability to maintain that price even when selling through third-party telecom carriers. He further added that Apple can be different here because they are the 800-pound gorilla.
iPhone X has been a major success as compared to iPhone 8. When iPhone 8 was released in September, there were no long queues of customers outside Apple stores because everyone was waiting for the futuristic iPhone X.
Last Friday, iPhone X was made available for purchase. Long queues of consumers could be seen outside various stores all around the world.