Apple's new iPhone X has now launched worldwide, and the true extent of its hefty price tag is starting to become clear.
New information from Apple Inc has revealed that the tech company is marking up its prices higher on the iPhone X than on the iPhone 8. The parts of the iPhone X do cost Apple 25% more, but the starting price has increased disproportionately by 43%.
An iPhone X costs Apple $357.50 (£272) to make and it sells for $999, according to TechInsights. The iPhone 8 sells for $699 USD and costs about $287 to produce (gross margin 59%).
One of the biggest component jumps in price is the display. The iPhone 8's LCD screen can be produced for $36 while the 5.8-inch iPhone X display costs Apple $65.50. Apple also pampered the iPhone X with a stainless steel frame that costs $36, as opposed to the aluminium edge of the iPhone 8 that costs $21.50.
What will really sting for customers, however, is the repair pricing Apple has laid out for the iPhone X. AppleCare Plus, the company's two-year extended warranty and insurance policy, costs users £199. It covers the iPhone for manufacturing issues and two instances of accidental damage. Anybody who takes out the policy will pay £25 to replace the screen or £79 to replace the entire device (these prices are only valid twice in the two years).
But if iPhone X users do not buy the insurance, they will pay £286.44 for a screen replacement and £556.44 for any other damage. An iPhone 8 screen replacement will cost £156.44 and other damage will cost £356.44.
TechInsights costing analyst Al Cowsky said Apple had the ability of to charge premium prices. "Apple can be different here because they are the 800-pound gorilla". Cowsky also said the steel frame on the iPhone X is less likely to bend than the aluminium, an issue rife with the iPhone 6 model.