iPhone 6s, iPhone 6s Plus production costs reportedly up
Apple is able to milk a ton of margin for its iPhones and for good reason(?), too: they’re great pieces of mobile machinery enhanced with tightly-controlled software. And, like it or not, under Tim Cook’s leadership, the company’s been rolling in the (pie) dough. So, with the record weekend the iPhone 6s and iPhone 6s Plus had over the weekend, it came time to find out how much of a killing each device fetches for Cupertino.
Part one of the (unofficial) answer? $404 for a 16GB model iPhone 6s, according to a quick Teardown.com assessment. The outlet actually dissected a 64GB model, but normalized the NAND flash memory costs down to 16GB. That’s a $245 bill of materials and labor.
For comparison, the same team estimated the basic iPhone 6 to cost $228.50 while an earlier IHS report has put the cost of production for a 16GB iPhone 6 at $200.10, which means raw SRP margins may have come down year-over-year by as much as 10 percent. IHS cost estimates of the iPhone 5S and iPhone 5, by the way, came to $199 and $197, respectively.
In the Teardown.com comparison, most of the model year cost increase came with an $11.50 bump in memory, thanks to the switch from 1GB to 2GB of RAM.
Part two comes mainly from IHS: putting together the 16GB model iPhone 6s Plus is currently costing Apple $236, yielding straight revenue of $513. IHS’s numbers from last year put the bill hike at about $19.40, or a margin decrease of 3.6 percent.
To be clear, Teardown.com does not have an estimate on its site for production costs of the iPhone 6s Plus as of this post. IHS did not publicly disclose an estimate for the iPhone 6s, either. The caveat hangs thick in this type of guesswork because it’s guesswork. Just as Apple reports vaguely about its numbers, take these figures above only as a hint of what’s going on with the company’s moneymakers.