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...
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...