The component analysis firm estimates that the total manufacturing cost of an entry-level iPhone 7, a model with a 4.7-inch screen and 32 GB of storage, is $224.80. IHS hasn’t estimated the cost of materials for the bigger iPhone 7 Plus yet.
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“All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past”, said Andrew Rassweiler, senior director of cost benchmarking services at IHS Markit. The iPhone 7 Plus includes longer battery life than the iPhone 7 in addition to two 12 megapixel rear cameras.
Supplies of Apple’s iPhone 7 Plus have been exhausted in all shades, and the smaller iPhone 7 has also sold out in the new jet black color, the company said last week. That being said, we’re sure many are also wondering how much do the phones cost to make, and exactly by how much is Apple marking them up by?
Apple kept the base price for its newest phone the same, at $649 – almost three times the build costs.
The Intel modem and related baseband chips are next at $39.90 (£30) and the new A10 Fusion rounds out the top three at an estimated $26.90 (£20).
While IHS estimates a build of materials, the firm says that “there are other costs, like software, that go beyond build of materials, that are not considered”, so it doesn’t provide a gross margin value.
The accessories included in the iPhone 7 box, including a Lightning-to-USB cable, Lightning-to-3.5mm audio adapter, EarPods with a Lightning connector, and 5W USB power adapter cost an estimated $11.80 combined.
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Before it’s here, it’s on the Bloomberg Terminal.
