News Desk |
Apple’s new brainchild iPhone X, which stands at 150,000 Rupees in Pakistan, is selling much faster than its technical predecessor iPhone 8, found a study. The poll says that although the iPhone X’s advanced hardware costs Apple 25 percent more than the iPhone 8, it is still selling at a 43 percent higher rate, leaving the 8 back at the shelves.
The study was conducted by a reverse engineering platform called Tech Insights, which tears up products and analyzes the components. Tech Insights, a 25-year-old initiative that has analyzed products like the Macintosh, Pentium 1 and the original iPhone, has come to the conclusion that iPhone 8 with its cheaper hardware, has failed to sell well.
Apple has received harsh criticism for branding its latest release with a feature that Samsung had introduced more than 5 years ago.
The iPhone X smartphone costs $357.50 to make and sells for $999 in the US, giving it a gross margin of 64 percent. The iPhone 8 sells for $699 and has a gross margin of 59 percent.
The finding comes as a surprise because trending devices like Apple products generate more revenue with time as their hardware costs depreciate. The iPhone X is the latest Apple release that hit the markets in September to an eager audience. It’s innovative design and lack of the home button makes it very different from iPhones in the past.
The iPhone 8, on the other hand, is an update on last year’s iPhone 7, which in itself was very similar to the iPhone 6 released in three years ago. Before iPhone X, iPhone 6 was the most popular iPhone version amongst consumers that preferred it to iPhone 7.
The probe of the Tech reviewer came to the conclusion that several of Apple’s design choices for the iPhone X pushed up its price. In particular, its 5.8-inch (14.8 cm) edge-to-edge display and associated parts cost $65.50, compared to $36 for the iPhone 8’s 4.7-inch display. This could be mainly due to the fact that the iPhone 8 uses older LCD technology, while the iPhone X uses what is called “Super AMOLED” technology, which allows for more vivid colors and a thinner overall design.
‘The iPhone X is saving grace; it’s not only making up for the horrendously ordinary 8, it is also bringing Apple back up against its rivals.
Apple is unique in the electronics industry for its ability to charge a premium price for its latest devices and for its ability to maintain that price even when selling devices through third parties like telecom carriers, said Al Cowsky, the costing analyst for Tech Insights. Speaking to an online publication he continued, “Apple can be different here because they are the 800-pound gorilla,” referring to Apple’s cult following.
Another costly component was the stainless steel chassis of the iPhone X, which cost $36 versus $21.50 for the aluminum housing of the iPhone 8. Cowsky said that the steel is less likely than aluminum to bend when flexed, a problem that dogged the iPhone 6 when it came out.
Apple declined to comment on Tech Insights’ analysis.
Apple has had its share of mishaps; the iPhone X launch event was a catastrophe for Apple and yet that did not deter sales. The trademark face unlock feature of the iPhone X refused to work on stage and it has been reported as a faulty feature. Apple has received harsh criticism for branding its latest release with a feature that Samsung had introduced more than 5 years ago. Also, the iPhone 7 was a disastrous release in terms of hardware as well as performance. With lag complaints, bugs, app crashes, the absence of the audio jack was a mere cherry on top.
Regardless of the post-Steve Jobs blunders, Apple has sustained its cult following and some analysts are now terming the joint launch of the two phones a smart move, despite having criticized it a month ago.
This could be mainly due to the fact that the iPhone 8 uses older LCD technology, while the iPhone X uses what is called “Super AMOLED” technology, which allows for more vivid colors and a thinner overall design.
‘The iPhone X is saving grace; it’s not only making up for the horrendously ordinary 8, it is also bringing Apple back up against its rivals. That is what Steve Jobs stood for; innovation. Apple might also be at an advantage due to its cult consumer base. The sales never seem to drop’ said Anosh Hayat, a Karachi based Tech writer at an online publication.
Not everyone seems comfortable with Apple’s direction for innovation:
‘As if removing the audio jack and the already limited Bluetooth connectivity weren’t enough, Apple decided that it’d fare better without the home button. The home button was an iPhone trademark. Apple probably did not learn from the iPhone 7’s tactile feedback replacement with the button, so they decided to remove it altogether’
Apple’s iPhone X’s launch follows weeks of concerns among analysts about the production of the new phone, which for the first time includes new facial identification software to replace the fingerprint used on previous phones.
Analysts have cautioned that production of the phone was below target, due to difficulties in producing the TrueDepth camera system, which houses sophisticated cameras and sensors making it possible to unlock the phone using Face ID.