Tuesday, November 5, 2024
Archived Post

The new iPhone 7 costs more to make than previous versions

IHS Makit estimates that a 32GB iPhone 7 requires $219.80 in bill of materials costs. The firm’s preliminary analysis further reasons an additional $5 basic manufacturing cost, bringing the total cost to produce the above-mentioned configuration to $224.80 (that’s an unsubsidized retail price of $649). 

Compared to IHS’s 6s examination, this total is $36.89 higher per unit. The research group hasn’t yet completed its teardown of the iPhone 7 Plus.

With the component strategy modified, improved capabilities, doubled storage capacity across the iPhone lineup and competition from other makers, the increase in bill of materials appears to represent a natural progression of the cost of doing business within a demanding smartphone market,” notes Seeking Alpha (www.seekingalpha.com).

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.