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iOS

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

By Adrian Diaconescu September 21, 2016, 6:46 am

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.

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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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