Apple’s latest flagship device, the iPhone XS Max (US$1249 device), reportedly cost less than US$500 to manufacture, after the Californian giant cut hardware to keep its RRP down.

According to TechInsights, the 256GB iPhone XS Max cost US$443 in parts and assembly, with its OLED screen remaining the most expensive component.

As per Reuters, last year’s 64GB iPhone X cost US$395.44 to manufacture.

TechInsights claims the iPhone X’s 5.8-inch OLED screen incurred US$77.27, whilst the new iPhone XS Max’s display is ~US$80.50.

The firm claims the marginal price increase (iPhone X versus iPhone XS Max) stems for a lack of key components e.g. a 3D Touch system which makes apps respond differently, based on the pressure of a user’s touch.

Analysts claim the trade-off was commercially astute, to ensure the flagship device remains competitive amidst heavy competition from Samsung and Huawei.

Apple’s 2018 phones encompass three variants; the ‘affordable’ iPhone XR (from US$749), base iPhone XS (from US$999) and 6.5-inch iPhone XS Max (from US$1,099).

Read the full teardown on TechInsight’s website here.

[Source: TechInsights]