It Costs Apple an Estimated $295.44 to Make an iPhone 8 Plus [Report]
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Posted September 26, 2017 at 3:02am by iClarified
It costs Apple an estimated $295.44 to make an iPhone 8 Plus, according to a preliminary estimate from IHS Markit.
The new 64GB Apple iPhone 8 Plus is said to carry a bill of materials (BOM) cost that comes out to US$288.08, higher than any previous iPhone. Additionally, it's estimated that Apple spends $7.36 in basic manufacturing costs per device.
The smaller iPhone 8 has a BOM of $247.51, or $9.57 higher than the Phone 7 at the time of release.
To compensate for the higher costs, Apple has increased the price of the 4.7-inch iPhone 8 by $50 and the 5.5-inch iPhone 8 Plus by $30.
“The higher total BOM cost for the iPhone 8 Plus can’t be tied to a single area or feature. The higher cost is the result of slower annual component cost erosion tied in with additional features,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “From a teardown perspective, the biggest cost adders would be the increased NAND flash memory content and new wireless charging components.”
“From our BOM analysis, we can see that Apple invested heavily in the camera capabilities of the iPhone 8 Plus due to the increase in component costs,” said Wayne Lam, principal analyst, mobile devices and networks for IHS Markit. “Based on these investments, we expect improvements not only in the optics in the dual camera module, but also in computationally intensive requirements of the portrait lighting capture feature that rely on the graphical horsepower and neural engine (AI) of the A11 Bionic chip.”
Check out the chart below for a full breakdown...
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The way I see this is that Apple has everything in place from the first iPhone and even though it gets better the iPhone but price shouldn’t keep going up it should be going down instead
The thing is that if you brake the 52$ apple will replace it for 150$ however if you brake the 5$ back glass it will cost you 400$ to replace it at apple :) cheers apple $)
What people don't see is that for all them parts there was a cost on designing them, engineers, stuff like that. Yes they do probably make more than half the cost on revenue even with all the post production expenses but it's not 295.
You're right, no one thinks about the research and development cost. The cost of giving free OS updates for 3 - 4 years. In most EU countries it comes with 2 years of warranty without needing to buy APP. If people buy through other retailers or distributors, there is their cut as well in that cost. There are so many things people just close their minds and ignore.