The iPhone XS Max is the most expensive iPhone in history, with the 512GB version selling in the United States for $1,449, but according to new research, Apple pays far less to manufacture the device.
TechInsights looked at the cost of each part in the iPhone XS Max 256GB, which Apple sells for $1,249, and the company discovered that the total cost of producing the device is just $443.
This means that Apple is pricing the iPhone XS Max three times as high, although estimating the profit margin is not feasible since the final cost of a product includes research, development and marketing.
Just like on the iPhone X, the display is one of the most expensive parts, costing $80.50. The iPhone XS Max comes with a 6.5-inch OLED panel, the largest ever used on an iPhone and a significant upgrade from the OLED on the iPhone X and iPhone XS.
The source, however, says that Apple found an affordable way to increase the screen size, as the iPhone X screen cost just $77.27. So, despite the obvious difference between the two, Apple is only paying $3 for the larger screen.
The secret is the simpler nature of the display, as some 3D Touch parts have been removed from the display, which in turn has helped Apple keep the price down. All of these elements cost almost $10.
Needless to say, it's no surprise that Apple makes a lot of money off every iPhone it sells, and while no details have been released yet, estimates suggest that the iPhone XS Max is already selling out.
The upcoming iPhone XR will likely become the best-selling iPhone of 2018, as it launches next month starting at $749.
