Component Breakdown Estimates iPhone 7 Costs to be $220

[Maura]

IHS has just released a comprehensive report that looks into the component costs of the iPhone 7, according to 9to5 Mac. It seems that the cost of production of the phone has risen since the iPhone 6s by about $36, but Apple still manages to make a hefty profit, of course.

In total, IHS says that Apple’s bill of materials for a $649 iPhone 7 with 32GB storage is $220.80. IHS puts the small increase in costs down to some of the new components that are featured in the iPhone 7, such as the Taptic Engine, improved camera, and increased storage.

To break down those costs further, IHS says that each A10 system-on-a-chip costs Apple $26. IHS says that the chip has a 16 nanometer process and a six-core GPU. The front and rear cameras cost a little under $20 combined.

Just as you might expect, the most expensive component of all is the 4.7-inch IPS LCD display, which costs $39. The cheapest part would appear to be the 1960 mAH battery, which costs $2.50.

IHS says that it is still working on analysing the bill of materials for the iPhone 7 Plus, which is expected to have cost more to produce due to the larger screen and dual-camera array, which is thought to have cost approximately $40 to manufacture.

Source: $649 iPhone 7 estimated to cost Apple ~$220, here’s the component breakdown

 

[ardchoille]

I wonder if IHS will research what it costs for the component designers, R&D personal, the employees who assemble the products, the costs of buildings and resources (electricity, water, sewage, etc.) all throughout Apple, lawyers, accountants, insurers, etc. The parts themselves are just a small part of the equation.

 

[scifan57]

There were also no cost estimates for transport costs, stocking costs in stores, salary costs of Apple Store employees selling the new iPhone, etc. The potential profit on each iPhone is not as large as it first appears.

 

[KevinJS]

There's also a cost to consumers for spurious lawsuits that Apple constantly has to fight off, regardless of their merit.

And I wonder what the EUs dubious claim for taxes has cost so far.