Apple loyalists were a bit shocked and a little dismayed when the Cupertino-headquartered technology company jumped up the retail prices of the two new iPhones — iPhone 8 and iPhone 8 Plus — without offering a new radical design or any extensive upgrades. Now that the iPhone 8 and 8 Plus have finally and officially hit the marketplaces, pundits at the research company IHS Markit claims that the leap in the retail pricing of the two new premium smartphones has largely have something to do with the surged of the component cost. The expenses of core components for the iPhone 8 and 8 Plus are significantly more expensive than the previous models.
The Entry Level Apple iPhone 8 (64GB) Component Costs About $247.51, Up From $237.94 For The Base Model (32GB) Of The iPhone 7
The iPhone maker will still be cashing in a huge profits on its new smartphones because of the increase in price is much higher than the climb in the investments on components. IHS Markit suggests that the 64GB bases model of the iPhone 8 has a material costing to $247.51, somewhat pricey than the $237.94 for the 32GB starting model of the iPhone 7 when it was first hit the shelves last year. Apple is offering the iPhone 8 with 64GB internal storage configuration for $699 compared to the iPhone 7 that costs $649 for the 32GB storage capacity.
Apple’s iPhone 8 overall component price costs about 35% of its retail sales price, which is similar to the 2016’s generation. It is indeed worth noting that the component expenditures does not include the expenses for the assembly, marketing, advertising, R&D, software, employee salaries, and among other factors. So, the bill of materials doesn’t give you the accurate sketch of the tech firm’s profit margins on each iPhone unit.
The substantial components costs for the entry level 64GB iPhone 8 Plus starts at around $288.08. The iPhone 8 Plus is being sold for $799 compared to iPhone 7 Plus’s price of $769 at the same time of release in 2016. Industry analyst Wayne Lam said that the “added value went to memory, camera, and chipsey.” These are the sections where the company has improved the new generation iPhones.
Additionally, the inductive wireless charging technology added weight to the iPhone 8 total component cost by about $2. The A11 Bionic system-on-chip (SoC) CPU cots $5 more than the A10 Fusion found on the iPhone 7 phones. The new advanced camera system equipped on the iPhone 8 Plus is worth $32.50. Moreover, the screen screens with True Tone display technology and the mechanical enclosures of the iPhone 8 were some of the most pricey components.
However, the iPhone 8 and iPhone 8 Plus component cost is notably economical than the iPhone X, which will be available with a starting retail price of $999 for the base model. Susquehanna International Group said that the total components costs of the iPhone X was $581 for the entry model that has 64GB storage capacity. The iPhone X is equipped with an OLED display that costs $80 per sheet. Among other expensive parts of the iPhone X are: the $45 Toshiba’s NAND flash memory, the $25 3D infrared sensor, the $26 A11 Bionic SoC, and the $18 Qualcomm modem.
The iPhone 8, iPhone 8 Plus and iPhone X are all equipped with a glass sheet on the back panel to accommodate the inductive wireless charging. Apple said that the 2017 iPhones have the “most durable glass ever in a smartphone.”
The iPhone 8 and iPhone 8 Plus, despite possessing the world’s best smartphone camera system, have seen disappointing sales in the first day and week of worldwide sale. The opening weekend sales o fthe two handsets were far below the Apple’s forecasts. Unlike in the 2016, the queues in front of brick and mortar stores of Apple for the iPhone 8 and 8 Plus were significantly smaller. As for the online pre-orders, it was also relatively cold, according to industry analysts.
Many believe that most of the shoppers are holding out for the iPhone X. Apple will begin its online pre-orders for the iPhone X on October 27, and ships on November 3. According to the notoriously reliable analyst Ming-Chi Kuo from the KGI Securities, the iPhone X will be in limited supply through early next year due to awful production issues of OLED display panels. — The Velvetiere/ Velvetiere.com