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Do you know how much it costs Apple to make an iPhone 7?

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Apple iPhone fans are busy in buying the newly launched iPhone 7 and ready to pay big amounts to get it. Of course, I am also a big fan of Apple devices and waiting for my turn to get one. The handset is already sold out from many stores, especially the black color variants of the iPhone 7.  But do you know how much it cost Apple to make an iPhone 7 which retails at $649 for 32GB model. According to the latest report published by a research firm named IHS Markit Ltd – The manufacturing cost of the recently launched iPhone 7 (32GB) is $224.80.

Below is the split off components and their cost.

Itemized Components Total Cost
Apps Processor $26.90
Baseband / RF / PA $33.90
Battery $2.50
BT / GNSS / WLAN $8.00
Cameras $19.90
Display $43.00
Electromechanicals $16.70
Glue Logic $1.30
Mechanicals $18.20
Memory $16.40
Power Management $7.20
User Interface $14.00
Box Contents $11.80

IHS said that the total cost to build a newly launched 32GB iPhone 7 is $219.80 plus a $5 basic manufacturing cost which sums up to $224.80 which is $36.89 higher than IHS’s estimates for the iPhone 6S due to newer components and technologies like the Taptic Engine, better camera, and storage increases.  Apple sells the base model of iPhone 7 at $649, this gives Apple an expected profit of $424 for each device sold.

Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit said

“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses. All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”

Below is detailed report by IHS:

IHS_Markit_Apple_iPhone_7_Top_Cost_Drivers_Rev3
IHS_Markit_Apple_iPhone_7_Top_Cost_Drivers_Rev3

Source

_IHS_Markit_Apple_iPhone_7_Top_Cost_Drivers_Rev3.xlsx (13.68 KB)

Tags : AppleiPhone7

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