The iPhone 7 costs a lot more for Apple to build than previous phones did
Research firm IHS has conducted its yearly teardown of the iPhone 7, and found that the materials that make up Apple's latest flagship cost an estimated $224.80. Considering that the phone costs $649, that would seem to leave plenty of room for profit!
However, as this chart from Statista shows, that estimation makes the new phone the priciest Apple has made in years - and by a good margin. It's about $13 more expensive than last year's iPhone 6s, and nearly $30 more than 2011's iPhone 4s.
It's also worth remembering that the bill of materials is only a small part of a phone's overall cost. Manufacturing (shown in red), sales and marketing, and R&D all have to be covered as well. Apple's margins will still be huge, but it appears as the iPhone 7's changes are a little more significant than its familiar design would suggest.
Statista
- 2 states where home prices are falling because there are too many houses and not enough buyers
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- 9 health benefits of drinking sugarcane juice in summer
- 10 benefits of incorporating almond oil into your daily diet
- From heart health to detoxification: 10 reasons to eat beetroot
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore