HardwareNewsResearchTechnology

New Study Shows That The iPhone 7 is More Expensive to Make Than iPhone 6s

Apple is spending more to manufacture its iPhone 7 smartphone than predecessor iPhone 6s due to features such as a bigger battery and larger storage capacity, according to a teardown by IHS Markit Ltd.

Including $5 in basic manufacturing costs, total cost to manufacture the iPhone 7 mobile rises to $224.80, $36.89 higher than the business research provider’s estimates for the iPhone 6s.

Apple retails an unsubsidised 32GB iPhone 7 at $649.

The company unveiled the iPhone 7 with high-resolution cameras and no headphone jack at its annual launch on September 7.

IHS Markit also said on Tuesday the iPhone 7’s Bill Of Materials (BOM), a financial estimate of the raw materials used, was “in line” with flagship smartphones made by rival Samsung but Apple ekes out better margins.

“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.

IHS Markit has not yet performed a teardown analysis on the larger iPhone 7 Plus.

Supplies of Apple’s iPhone 7 Plus have been exhausted in all shades, and the smaller iPhone 7 has alsosold out in the new jet black colour, the company said last week.

Yet, in some markets, such as China, interest in the new phone has been muted, as cheaper local brands amp up their design and marketing.

Source: Reuters

Tags

Staff Writer

All articles published by Staff Writer have been contributed by all our reporters and edited and proofread by our editorial team.
Back to top button
PC Tech Magazine
Close

Adblock Detected

Please disable your adblocker to continue accessing this site.