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IPhone X parts estimated at US$370: IHS Markit

09 November 2017

Also among the both iPhone 8 Plus was the most selling one. The numbers aren't pretty.

"Shipments of older devices, such as the iPhone 6s and SE, saw an uptick in Q3". The Chinese company has had a strong presence in the Asian market, which explains the OPPO A57 and the R11 taking 4th and 5th place, shipping 7.8 million and 7.2 million units respectively.

The findings suggest that the iPhone X is significantly more expensive to manufacture than the iPhone 8. But while Apple shipped 5.4 million units of the iPhone 8, it shipped 6.3 million of the larger iPhone 8 Plus.

Samsung continued to lead the charts with 82.8 million smartphones, an increase of 8.2 percent compared to the same quarter previous year. Apple is now offering more diversity than ever with five iPhone models in total, going back to 2015s iPhone 6s.

"The iPhone X is the most expensive iPhone ever made, and it has the highest retail price tag of comparable flagship phones, catapulting the smartphone industry to an entirely new price point", IHS Markit said.

Apple's iPhone X is now available to buy - if you can find one. "It is aggressively defending its market share, but it will not compromise its rigid margin structure to do so".

Those are just some of the components making up the iPhone X. The camera, Qi wireless charging module, battery, the Apple A11 Bionic chip, and other smaller components all add to the total manufacturing cost.

Samsung remains the top smartphone vendor worldwide and grew a healthy 8.2% with strong sales of the discounted Galaxy S8 duo and a strong performance of the affordable J-series in India and the Middle East. For a product line aimed at driving value, not volume, this was a positive result.

Canalys analyst Ben Stanton agrees that Apple is okay with its shipments being spread across multiple generations of iPhones. In total, it shipped 10.3 million devices from its Galaxy S8 range in Q3. "As the battleground at the high end moves toward AI and AR, Samsung is behind, and needs to catch up with competitors such as Huawei and Apple".

Although Apple has dismissed the bill of material analysis as being an inaccurate representation of the cost it incurs in producing its smartphone, we believe that year-over-year comparisons (from the same research firm) do provide a sense of how Apple's gross margins could trend.

IPhone X parts estimated at US$370: IHS Markit