Apple's iPhone X has higher margin than iPhone 8: analysis

[Calista241]

Apple Inc’s (AAPL.O) new flagship iPhone X makes the company more money per phone than its iPhone 8 model, according to an analysis, which found the iPhone X’s flashier parts cost Apple 25 percent more than the iPhone 8, but that it retailed 43 percent higher.

The iPhone X smartphone costs $357.50 to make and sells for $999, giving it a gross margin of 64 percent, according to TechInsights, a firm that tears down technology devices and analyzes the parts inside. The iPhone 8 sells for $699 and has a gross margin of 59 percent.

The finding is surprising because technology products tend to become more profitable as they age and the parts for them drop in cost.

The iPhone X is a brand new design that went on sale on Friday, to apparently strong demand, while the iPhone 8 is an update on last year’s iPhone 7, which itself was similar to the iPhone 6 released in 2014.

http://www.reuters.com/article/us-apple-iphone/apples-iphone-x-has-higher-margin-than-iphone-8-analysis-idUSKBN1D62RZ?il=0

[emulatorloo]

1. It's a luxury item for early adopters. iPhone 6s can be had for 99.00, 5se for free (guts of 6 in

5 case). X has a lot of new technology which will no doubt trickle down at some point. some folks either need or think they need to have the most absolutely cutting edge latest and greatest. X is aimed at them.

8 is aimed at a different market.

[GeorgeGist]

2. Greed is expensive ...

whoda thunk it.