Surprise! iPhone X May Be More -- Not Less -- Profitable Than iPhone 8
A couple months ago, Susquehanna estimated that Apple's (NASDAQ: AAPL) iPhone X would have a bill of materials (BOM) of $581, which suggested that the hardware margin on the 10th-anniversary handset would be significantly lower than prior iPhones (although modestly above Apple's corporate average). That was despite the iPhone X's starting price tag of $999. However, that BOM estimate was released just shortly after the device was unveiled, and well ahead of actual deliveries.
Now that iPhone X has launched, we're seeing the usual slew of actual physical teardowns that will yield more accurate estimates. The latest comes from teardown specialist TechInsights (previously Chipworks). Reuters reports that TechInsights pegs the iPhone X BOM estimate at $357.50. At a $999 retail price, that suggests a hardware margin of 64%. In contrast, the iPhone 8 hardware margin is estimated at 59%, according to the report.
Image source: Apple.
Source: Fool.com
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