Sold for $750 outright, a 64GB iPhone 6s costs Apple just $234 in components

Apple’s outrageous profit margins on anything from iPhones to iPads to fledgling smartwatches have been well-documented, stirring up many a controversy, and prompting plenty of imminent drop predictions by various market analysts.

After all, tech competition is continuously heating up, particularly in the mobile space, so sooner or later, Cupertino must settle for humbler per-unit gains in order to retain its dominant position. Well, that may be the case down the line, but it appears the iPhone 6s is roughly as cheap to manufacture as its predecessors while commanding no-contract retail prices of $649 and up.

According to Bank of America Merrill Lynch estimates, a 64GB 4.7-inch Apple iPhone 6s requires a component investment of under $250 before going on sale for $750. Specifically, the grand total of the parts used to assemble the 3D Touch-enabled handheld sits at $234, of which semiconductor-related expenses take the cake, at $127.

That includes a $25 A9 processor, $20 for flash memory, a combined $36 bill for cellular radios, and $22 in sensor spending, such as fingerprint recognition or NFC. Meanwhile, the fancy screen, long overdue upgraded camera, and slightly smaller than before battery amass a $73 or so production charge.

Finally, the “other” section of the iPhone 6s bill of materials sets Apple back $33 for each super-robust aluminum frame and circuitry meant to put the whole ensemble together. Now, obviously, the $234 figure doesn’t incorporate actual manufacturing and assembly costs, nor does it cover the R&D or marketing stages of the new iPhone’s evolution to global fame.

Still, the profits at the end of the day should be monumental, given a 64GB iPhone 6 Plus, for instance, which carried a BOM of $236, only added $4 in manufacturing to the equation last year.

Source: Business Insider
Via: Redmond Pie

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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).