“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,” Stephen Nellis reports for Reuters. “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 (336 pounds) in parts and assembly costs, compared with $395.44 for the 64-gigabyte version of last year’s iPhone X.”

“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,” Nellis reports. “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.”

Nellis reports, “Other costs that increased were the phone’s processor and modem chips, primarily because the chips used newer chip-making techniques from Intel and Taiwan Semiconductor Manufacturing Co Ltd to boost their performance while taking up the same space.”

Read more in the full article here.

MacDailyNews Take: These costs, of course do not factor in R&D (creating the world’s most powerful – by far – smartphone chip doesn’t come free), packaging or marketing/promotions, to name just three additional costs.