The iPhone XS Max, one of three new iPhones launched by Apple earlier this month, also the costliest of the lot, was priced at Rs 1,09,990 for the base variant of 64GB and Rs 1,44,900 for the 256GB variant, raising a few eyebrows. However, the high price that also raised a few eyebrows hasn’t affected the demand of the device. According to a research note issued by well-known analyst Ming Chi-Kuo of TF International Securities, the 6.5-inch device is outselling iPhone XS ‘three to four times’ and has emerged as the most popular option among the users.
The customers might be paying a hefty price for the phone but the iPhone XS Max with 256GB storage is estimated to cost Apple $443 (or approx Rs 32,195) to manufacture, according to a teardown report from TechInsights. The report says that the device’s most expensive component – 6.5-inch OLED Screen – was supplied by Samsung for $80.50 (Rs 5,853) each.
The other major components of the phone – A12 Bionic chip and modems – were bought at $72 (Rs 5,235) while the flash storage was purchased for $65 (Rs 4,725). The “Surgical Steel’ frame had cost the company $58 (Rs 4,216). The Bill of Materials (BOM) cost for the iPhone XS Max is $443 (Rs 32,195), representing a hike of $50 (Rs 3,636) over last year’s 64GB iPhone X.
However, this only includes the value of components based on their current market value and doesn’t add Apple’s spending on marketing, advertising, the cost of creating iOS 12, research and development and so on.
“All told, what they took out adds up to about $10, so this $80 estimate would have been about $90,” Al Cowsky, who oversees cost analysis at TechInsights, told Reuters in an interview. “They had a trade-off in cost.”
The iPhone XS Max retails for $1,299 (Rs 94,466), in the United States, making it Apple’s most expensive smartphones to date.
The phone will go on sale in India on September 28 along with iPhone XS. The base variant of iPhone XS and iPhone XS Max have been priced at Rs 99,900 and Rs 1,09,900, respectively. The pre-booking for both the devices has started.
The most affordable of the three iPhones – Apple iPhone XR will cost Rs 76,900 and will go on sale next month.