Apple reportedly spends more on iPhone 8 Plus manufacturing than 7 Plus, profit margins still hefty

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Apple’s incrementally upgraded iPhone 8 and 8 Plus are objectively less eye-catching than the Face ID-recognizing iPhone X, but it’s only taken a few days for them to prove relatively sturdy in different durability tests, as well as legit camera powerhouses.

Besides, they’re still Touch ID-capable, with the home button-embedded fingerprint sensor verifying its worth, security and reliability a long time ago, unlike the facial authentication method that’s making everyone nervous.

At $699 and up, the 8-series devices are far from affordable, though it was probably always unrealistic to expect anything less. This Cupertino-based tech giant sure likes its profit margins nice and hefty, spending an estimated $295.44 on the components and “basic manufacturing” of every 64GB iPhone 8 Plus unit then sold for $799 a pop.

That’s almost 18 bucks more than the total production costs of an iPhone 7 Plus approximated by the same “world leader in critical information, analytics and expertise”, called IHS Markit, while a “regular” iPhone 8 purportedly commands a $247.51 bill of materials, up $9.57 from the iPhone 7’s rough BOM.

 

Back to the $295.44 tag attached to the “entry-level” iPhone 8 Plus, including a $288.08 BOM and $7.36 actual manufacturing costs, we should stress it’s still lower than the $301.60 bill of materials associated with a 64GB Samsung Galaxy S8. Naturally, the GS8+ and Note 8 cost even more to make, although a slightly less reputable source wildly claimed a 256 gig iPhone X could carry a $412.75 BOM.

This would be a good time to point out that IHS calculations, while unofficial and imperfect, are based on the British firm’s own teardown inspections. The iPhone 8 Plus disassembly process found that the 5.5-inch Full HD display is likely to cost around $52.50, with cameras valued at a total of $32.50, about $31 worth of memory inside, and the A11 Bionic processor accounting for roughly $27.50 of the handset’s BOM.

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About The Author
Adrian Diaconescu
Adrian has had an insatiable passion for writing since he was in school and found himself writing philosophical essays about the meaning of life and the differences between light and dark beer. Later, he realized this was pretty much his only marketable skill, so he first created a personal blog (in Romanian) and then discovered his true calling, which is writing about all things tech (in English).