Apple's iPhone X has higher margin than iPhone 8: analysis
Apple Incs (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 Xs 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 years 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