Ever wondered why the Apple store offers so many great deals to exchange your old phone for a brand new one?
Well, the answer is simple.
If you hadn’t noticed, the iPhone 8 is very similar to the previous version the iPhone 7, which was quite similar to the iPhone 6 (you see where this is going). Components of those versions are the same, and Apple uses older phones to make new ones.
However, the iPhone X has a completely new design that costs them so much more; thus, its extremely high price.
In particular, its 5.8-inch (14.8 cm) edge-to-edge display and associated parts cost around AED 240, compared with AED132 for the iPhone 8’s 4.7-inch display.
Another pricey choice was the stainless steel chassis of the iPhone X, which cost AED 130 versus AED 79 for the aluminium housing of the iPhone 8.
According to TechInsights, although the iPhone 8 is so much cheaper to make when compared to the iPhone X, Apple still makes so much more off each iPhone X that they sell.
An iPhone 8 costing AED 2900 brings in a 59 percent profit margin for Apple; on the other hand, an iPhone X, which goes for the cheapest price of AED 4,099 costs Apple almost AED 1,300 to make but brings in a gross profit of 64 percent.
Although, iPhone X’s flashier parts cost Apple 25 percent more than the iPhone 8, it retails 43 percent higher.
