Cell Phones Are Sold Three Times More Expensive Than It Costs To Make Them

An investigation concluded that cell phones are sold three times more expensive of what it costs to make it, the average profit margin of companies like Huawei and Apple it is more than 40% of what it costs to make them.

By MiamiDiario Newsroom

The study gives as an example that both the Huawei P30 Pro such as iPhone XR slope less than 350 dollars to make them, include this cost all components that make them up, but their price for the consumer is approximately 900 dollars.

The technology consultancy TechInsights informed the Efe news agency that preparing a Huawei P30 Pro costs a few 349,40 dollars, and is placed on the market in 915 dollars, reported elsiglo.com.ve.

As for the manufacture of iPhone XR costs three dollars less, being located in U.S. dollar 346,19, while in the market its average price is 899 dollars.

To know the amount of the manufacture of each cell phone, the consulting firm TechInsights disarmed the two models and reported the price of each of its components.

Meanwhile, the World Intellectual Property Organization asserted that the average profit margin that Huawei and Apple they obtain for the manufacture of their high-end mobiles can be estimated at 40%.

According to the intellectual property report carried out by the Organization in 2017, they determined that Apple with the iPhone 7 and Huawei with the P9 obtained an average profit margin of 42%.

The price of each component

When the TechInsights consultancy made the calculations of each of the components, it determined that the cell phone Huawei P30 Pro they cost a 38,18% of its final price, while the elements of the iPhone XR of Apple are estimated at a 38,50% of the market price.

Thus, these are practically identical figures that reveal that, at least in terms of components, manufacturing a high-end mobile costs practically the same for both companies.

In the case of Huawei P30 Pro, The elements more expensive are the cameras and parts that enable the image, this cell phone has four cameras, three in the back of 40, 20 and 8 megapixels, and a front of 32 megapixels, the cost of all of them is approximately 75,88 dollars.

The cameras of the iPhone XR wThey cost less than those of the Chinese cell phone since it has two, one in the front and one in the back. The most expensive item of the Californian mobile is the application processor whose cost is 50,42 dollars.

The price of other components of the Huawei P30 are the processor is $55,49, the screen is $22,58, the battery is $13,46, the case is $16,36, and the sensors are $5,28.

In the case of the iPhone XR, the processor is worth $50,42; the screen sits at $33,35; the battery costs $9,20; the case costs $13,32, and the sensors $1,95.

The TechInsights study also found that assembling all the elements and testing the models cost less than $20 on both handsets.

Earning of companies with mobiles

In the first half of 2019, Huawei's profit from the sale of all its smartphone models was about 117.8 million dollars, according to the IDC consultancy, it sold more than seven cell phones per second.

In the case of Apple, the sale of its models in the first half of 2019 was 70.2 million dollars, which implies, according to the IDC consultancy, that it sells more than four mobiles per second.