There is no evidence to support the claim that the margins are double. Current evidence suggests that it is only marginally higher - http://fortune.com/2017/09/18/apple-iphone-x-margins/
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Analysts are wrong. Slow ip8 sales will destroy ipX sales
- Thread starter oplix
- Start date
- Sort by reaction score
There is no evidence to support the claim that the margins are double. Current evidence suggests that it is only marginally higher - http://fortune.com/2017/09/18/apple-iphone-x-margins/
iphone x is expected to cost bout 150 more to make cuz oled. it sells for 300 more. so roughly twice the margin.
on iphone, bad spelling, no grammer.
Last edited:
That article is an estimate, there is nothing that says how much those parts really are and if Apple really is making double the margins. On top of that, 'leaks' in the past said Samsung was marking up their tech for Apple, which may have an estimated OLED part for example be cheap on the face, but without the 'Special Apple Tax by Samsung' added to it.
Can you be more specific / provide an alternative link? The iPhone 7 had an estimated cost of $250. The iPhone X has an estimated cost of $600. That’s $350 more for the iPhone X, not $150 more, and I don’t see the iPhone 8 and being more expensive to make than the iPhone 7, given how similar the design is?
Do you have an article with an alternative estimate? Otherwise there’s no reason to suggest the article is any more wrong than someone else’s opinion.
Apple goal has always been to maximum net income. Marketshare is only good IF it increases revenue. Apple is not willing to sacrifice revenue, such as selling at a lower margin, to increase marketshare. So I would never expect to see Apple use the Amazon or Google strategy.
I do not have a separate article and am not suggesting the article is any more wrong than someone's opinion. Just throwing my opinion in the mix based on rumors from past articles like this one:
https://www.macrumors.com/2017/09/06/apple-oled-display-monopoly-iphone-8-price/
If you were Samsung and Apple wanted you, their biggest competitor in the mobile phone space, to make OLED displays with Apple's patents that you can't use... that could possibly be better than the displays of your own phones (besides having InfinityEdge) wouldn't you want to mark up the price?
Thanks for the context / clarification. You are correct - there are several articles supporting this point, such as https://www.theverge.com/circuitbreaker/2017/9/6/16263060/apple-iphone-8-samsung-oled-supplier
This gives more credence that Apple is not in fact making higher margins on the iPhone X, but likely Samsung is the one profiting by being the sole or at minimum major supplier of the OLED screens, which apparently are more than double in cost than the equivalent LCD screens used in the iPhone 8/8+.
This gives more credence that Apple is not in fact making higher margins on the iPhone X, but likely Samsung is the one profiting by being the sole or at minimum major supplier of the OLED screens, which apparently are more than double in cost than the equivalent LCD screens used in the iPhone 8/8+.
No offense but you come off as an Apple apologist.
"Kuo estimates that Apple is paying between $120 and $130 per unit, which is a significant hike up from the approximate $45 to $55 cost"
130-55=$75
1000-650=$350
So Samsung is making $75 more and Apple is making $275 more. Both are optimizing their profits.
That is only the display component. Besides you haven’t actually responded to my comment regarding the iPhone X costing $350 more than the iPhone 8, not $150 more.
[doublepost=1506313635][/doublepost]So to extract the relevant quotes from the link I posted earlier:
Granted the true situation is surely more nuanced, but it seems unlikely the margin is double, unless I am missing something and/or the article is inaccurate.
It would be pretty dumb to prefer one over the other when one hasn’t been used by said user.
That is financially impossible due to its price point and the wide range of demographics that use iPhones.
No offense but it doesn't seem to me that you are using critical thinking skills given your post. It also seems you are trying to find facts to justify your emotions which are "I don't want to believe that Apple is making more money off me." It's annoying me.
iPhone 8 is 699. iPhone X is 1000. 300 more.
If the iPhone 7 costs 250 to build and the LCD is 75 more expensive then that gives ~325 rough estimate for X. Yes other parts are different but it's marginal (e.g. slight increase in Al metal) and the phones use primarily the same components.
If rumored production of X is 10,000 units a
The most anticipated iPhone was the original iPhone. The iPhone X is not going to break an Apple record as far as sales are concerned due to the simple fact that there are production issues limiting supplies.
[doublepost=1506321321][/doublepost]
I'm retired, don't bother me.3:00 AM for those of us on the East Coast! It sucks!
There are a few flaws in your post.
1.) Apple can't "milk" any consumer, the consumer makes the decision to upgrade or pay with their own money for the iPhone X. It's optional.
2.) No-one is questioning that OLED is new, but for the iPhone and the core demographic who use it, it is new technology to them after all the years of LCD displays.
3.) Facial recognition has been around for years, but to what level or degree has it been a primary source of security that would guarantee one's confidentiality and privacy in comparison to Apple's investment. Apple likely invested millions of dollars into research and development for Face ID to be successful and secure.
Considering this is the first major design change in years and this device has been rumored for over a year and everybody is talking about it...yeah its the most anticipated device in Apple smartphone history. Tbh the original iPhone was more of a niche device. The iPhone didn't really take off and become THE iPhone until the following year. iPhone 10 will be a worldwide device that alot folks will want. Hell the anticipation for the 10 is so great that it basically killed the iPhone 8 launch. And folks here can try and spin it as "well lines have always been short on the iPhone day b/c of online ordering" or "well maybe they're not getting either phone" but it's clear as crystal that the demand for iPhone 10 is what basically made the iPhone 8 non existent.
Bottomline...the iPhone 10 is gonna sell like crazy despite the doomsday theories that some on here keep putting out. Just judging the feedback of customers that I talk to, yeah alot of folks are excited for this device. I expect long lines and overall Black Friday levels of craziness.
Will the device be backordered? Probably. Will it be as bad as some are saying? Doubt it. Apple would not have set a date for the most anticipated iPhone ever if they didn't have an idea on what kinda inventory they were dealing with. They wouldn't risk that. This isn't some apple watch band or airpods. This is the 10th anniversary of the iPhone. Tim isn't about to screw this up. Quite frankly, he can't afford to. Like I've said before, I've heard these production horror stories every year. Literally this happens every year to the point that it's almost a tradition, heading into iPhone preorder time. Gold 5S, 6 Plus, Jet Black iPhone 7 Plus....all devices that had production issues and I (along with many) still got our iPhones either on launch day or very soon after. And about two months after the initial launch, supply was starting to catch up with demand. I fully expect Apple to break yet another record with this device. The hype is insane for this phone
Hmmm...you didn’t even bother to read the article did you? You’re also ignoring Face ID, as well as whatever adjustments are needed to fit the new form factor. Without any facts, anyone can handwave or concoct numbers to support their opinion.
Anyway I don’t disagree that the margin is higher for the iPhone X - I may have given that impression misleadingly earlier. My only contention is that it is nowhere near double, which is a magical number that is not supported by any evidence presently.
Nobody doubts it will sell and perhaps sell out for the units that are available. You however do not seem to accept that its price is putting a lot of people off too.
I don’t think it is unreasonable to suggest it’s not going to sell as well as let’s say a base model 6S which was £400 cheaper on release. The price of the X has ensured its market outreach is significantly smaller and we are in an age where smartphones are kept longer with annual upgrades in decline.
iPhone users cover a wide range of demographics and it is economically impossible for the X to be affordable across this range. It’s a niche product aimed at high earners and enthusiasts. It’ll sell well but it’s a huge stretch to suggest it’ll break previously held records.
The iphone x will not sell as good as past iPhones period. It’s overpriced and people like the old interface. With it not changing that much honestly, it is going to be a shocker,.
Good point. This is why companies like Intel and NVIDIA use to release their most powerful CPU or graphics card respectively first if they're part of a new generation.
Yes I apologize for misleading you, it seems to be 2-3 weeks from Apple.
If "people keep saying this", then maybe you should pay attention to what people are saying. I never said you couldn't get a pair quicker, but FROM APPLE, they only recently dropped down to 1-2 weeks from 4-6 weeks.
"People keep saying this" and wouldn't you know, all those people are right.