iPhone SE predictably costs a lot less to make than iPhone 6s, at $160

It’s the same old story we’re almost too familiar with. No matter what type of upgrades new iPhones or iPads bring to the table, Apple gets richer and richer with every unit sold. Even the tech giant’s most affordable gadgets yield massive profits, offsetting a fairly disappointing box-office start.

As you know now that the iPhone SE has been torn down and rigorously inspected under the hood twice, many of its components seem to be borrowed from past generations, thus greatly reducing production costs.

How greatly? A preliminary estimate by IHS puts the so-called bill of materials (BOM) at $156.20, other manufacturing expenses raising the grand total to a cool and low $160. That’s a fraction of the $236 needed to assemble each iPhone 6s Plus copy then sold at $750 and up free of contractual obligations.

$160 is of course appreciably south of Galaxy S7’s BOM too, appraised at $255 last month, and most importantly for Cupertino, it’s roughly 40 bucks lower than the iPhone 5s production rate back in the day.

Then again, the 5s carried an MSRP of $750 unlocked in 2013, so all in all, it doesn’t look like Tim Cook & co. will be able to squeeze profit margins quite as hefty this time around. At least not on the entry-level 16GB iPhone SE configuration, priced at $400 at retail, with the 64GB model however fetching $500 in stores and costing only $170 to make. You see why Apple’s so opposed to the idea of microSD storage expansion?

Source: Business Wire

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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).