How to change the cost of Apple’s smartphone

Every year Apple becomes only more expensive. This is due to many different and independent factors ranging from inflation and rising prices of components, up to complex production process. Research company IHS Market decided to find out how it has varied the actual price and the cost of the iPhone over the past years. The results of the study were unexpected.

To conduct an objective and fair comparison, experts estimate the cost components of each of the monitored iPhone at the time. However, experts did not consider other potential costs: spending on research and development, advertising and marketing, logistics, staff salaries, and warranty obligations.

The graph shows that iPhone X was the starting point — the component costs have grown by more than $ 100, the response was immediate, the retail price reached $ 1,000.

It is noteworthy, but the price of the latest Apple smartphones have grown disproportionate to their cost. Illustrative example — from each sold iPhone 4s, the Corporation earned about $ 400, in the case of the iPhone XS Max this figure is already all 656 dollars. And it seems that this is not the limit.

However, even with all the production costs, the company has succeeded in taking a very big plus. Apple still earns from smartphone sales much more than all the other players of the mobile market combined. According to various sources, in the hands of the Corporation is concentrated to 90% of all industry profits.

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