How Much Money is an iPhone 10?

Are you curious about how much it costs Apple to make an iPhone 10? You’re not alone. One of the most common questions asked is how much does Apple actually have to pay to make one of these phones? A recent article posted on Mac rumors estimated that the cost of the components for the iPhone 10 is $357.50. However, this estimate does not take into account other expenses like research and development, software creation, advertising, and distribution.

At a retail price of $999, the iPhone 10 has a gross margin of 64%, which is higher than the iPhone 8 gross margin of 59%. While a 64% gross margin is not considered crazy in business terms, we have to remember that this doesn’t include R&D or software development. When taking these factors into consideration, the actual iPhone 10 component cost might be closer to $400 or even $450.

The reason why an iPhone 10 costs so much is that many of its components are more premium and cost Apple more. For example, the stainless steel chassis of the iPhone 10 costs an estimated $36, which is a significant premium over the $21.50 Apple pays for the iPhone 8. Similarly, the 5.8-inch edge-to-edge display costs an estimated $65, compared to $36 for the 4.7-inch display of the iPhone 8.

Furthermore, the battery design of the iPhone 10 is unique. It has two cells in an L-shape to fit into the phone. This neat and minimal design probably cost Apple a decent amount of money.

In conclusion, while the raw materials cost for an iPhone 10 is estimated to be $357, the actual cost is higher when other expenses are taken into account. The cost breakdowns are generally much different than reality, so it’s hard to say what the actual cost of an iPhone 10 is. Nonetheless, Apple enjoys a decent profit margin in selling iPhones, which is likely why they continue to price them high.

What are your thoughts on the cost of an iPhone 10? Do you think it’s higher or lower than $357? Let us know in the comments below.