Apple shaves cost from displays in newest iPhones: analyst firm

By Stephen Nellis (Reuters) - Apple Inc shaved some parts from the display in its largest new iPhone, helping keep costs under control in what has become the priciest component of its phones in recent years, according to a new cost analysis of the device. TechInsights, an Ottawa, Ontario-based firm which rips open phones to analyse their contents and estimate the cost of the parts inside, said on Tuesday that the iPhone Xs Max with 256 gigabytes of storage capacity contains about $443 in parts and assembly costs, compared with $395.44 for the 64-gigabyte version of last year's iPhone X.

Reuters September 26, 2018 06:05:17 IST
Apple shaves cost from displays in newest iPhones: analyst firm

Apple shaves cost from displays in newest iPhones analyst firm

By Stephen Nellis

(Reuters) - Apple Inc shaved some parts from the display in its largest new iPhone, helping keep costs under control in what has become the priciest component of its phones in recent years, according to a new cost analysis of the device.

TechInsights, an Ottawa, Ontario-based firm which rips open phones to analyse their contents and estimate the cost of the parts inside, said on Tuesday that the iPhone Xs Max with 256 gigabytes of storage capacity contains about $443 in parts and assembly costs, compared with $395.44 for the 64-gigabyte version of last year's iPhone X.

Apple released a trio of new phones earlier this month, including an update on last year's iPhone X, called the iPhone Xs, that starts at $999, and the budget-minded iPhone Xr that starts at $749. But it was the iPhone Xs Max - with a 6.5-inch display that uses so-called OLED technology for richer colours - that pushed new pricing boundaries, starting at $1,099.

In its cost analysis released on Tuesday, TechInsights found that the single priciest part in the iPhone Xs Max - the display - cost $80.50, compared with $77.27 for last year's iPhone X, which featured a smaller 5.8-inch screen. The relatively small increase in cost despite the larger screen size was because Apple appeared to have removed some components related to its so-called 3D Touch system, which makes apps respond differently depending on how hard users press the screen.

"All told, what they took out adds up to about $10, so this $80 estimate would have been about $90," Al Cowsky, who oversees cost analysis at TechInsights, told Reuters in an interview. "They had a trade-off in cost."

Apple declined to comment on the study.

But Bob O'Donnell of TECHnalysis Research said Apple likely made the right decision to focus on ensuring it could deliver a larger-screened model this year economically.

"For a certain group of people, the whole thing is about the screen. It's driving the whole experience and it's what is making people excited about using the phone," O'Donnell said.

Other costs that increased were the phone's processor and modem chips, primarily because the chips used newer chip-making techniques from Intel Corp and Taiwan Semiconductor Manufacturing Co Ltd <5425.TWO> to boost their performance while taking up the same space. The 256-gigabyte iPhone Xs Max TechInsights analysed sells for $1,249 in the United States.

(Reporting by Stephen Nellis; Editing by Leslie Adler and Lisa Shumaker)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.