Preliminary iPhone 7 BOM is out: cheaper to make than Galaxy S7, costlier than iPhone 6s

You should all know the drill by now. First come the ambitious sales targets, then component-revealing teardowns, various durability tests, the occasional something-gate controversy, bombastic ads, and finally, bill of material estimates.

Well, London-based analytics company IHS Markit is ready today to offer us its preliminary overview of the iPhone 7 manufacturing costs, and the conclusion isn’t surprising in the least. As always, Apple rules the charts when it comes to profit margins, spending roughly $224.80 (marketing not included) for every new 4.7-inch iPhone copy sold at $649 unsubsidized.

In contrast, Samsung was found to put each Galaxy S7 together at a total cost of $255 back in March, but the iPhone 6s last year yielded even thicker margins than its A10-powered, water-resistant, OIS camera-toting, no-jack successor.

One of the main reasons for Cupertino’s increased expenses is obviously the augmented base 32GB storage, though the SK Hynix-produced NAND memory drive and Samsung’s 2GB LPDDR4 RAM module still combine for a modest outlay of $16.40, compared to, say, a $43 display, $33.90 baseband equipment, and $27 TSMC system-on-chip.

The marginally souped-up battery, meanwhile, is peanuts, at $2.50 a pop, with the upgraded 12 and 7MP cameras not exactly costing a fortune either. Just $19.90 combined. And some financial experts still feel Apple’s in trouble.

Source: IHS Markit

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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).