Apple announced its flagship iPhone on September 12. The iPhone X is the most feature-heavy handset from the company, but it is also, the most expensive. Starting at $999, many Apple fans may not be able to afford the iPhone X this year due to its high price. One may be wondering why the iPhone X sports such a high price tag. So, here is the estimated cost of producing each unit based on analysts from industry insiders in China.

Samsung's Super Retina Display panels

The 5.8-inch Super Retina Display panels from Samsung is the most expensive part in the iPhone X.

By some estimates, the Cupertino-based company is paying $80 for each display panels. Others, however, feel that Samsung is charging closer to $100-$120 per panel. Apple has employed OLED displays in the iPhone X, instead of the LCD panels it deploys for its other iPhones. This is one of the primary reasons why the flagship handset is so expensive this year.

Cost of other major parts

Estimates also suggest that each new A11 Bionic chipset costs $26. Apple has also equipped the handset with Qualcomm modem, which sports a price tag of $18. Apple has ditched the Touch ID sensor this time around and has instead fitted the iPhone X with a 3D facial recognition module, dubbed Face ID. The 3D sensor for the Face ID costs $25.

Additionally, the glass panel present on the front sports an $18 price tag.

For the 256 GB NAND memory from Toshiba, the company has to pay $45 for each unit. The iPhone X sports 3 GB of RAM, which adds another $24 to the overall cost. Other smaller parts inside the handset also bear a certain price. Taking each of these individual costs into account, it is estimated that Apple spends around $412.75 for producing each model of iPhone X's 64 GB variant.

This model has been launched at a price of $999.

This means that Apple will sell the handset at a profit of around 59 percent. Although this may sound like a great profit margin, one has to consider the extra costs of the sale of the iPhone X. Apple has to pay expenses related to logistics, production, manufacturing, and more.

After taking all of these additional expenses into account, Apple's profit margin for the iPhone X will be reduced considerably.

The iPhone X preorders will begin on October 27, while the devices will start shipping from November 3. The company revealed that the 64 GB variant would be available for $999. The 256 GB higher model will retail for $1,149.