According to a new report by IHS, Apple’s component costs for the iPhone 7 have risen compared to the previous iPhone. This means you are technically getting more bang for your buck when you buy an iPhone. But don’t fear, Apple is still making a tidy margin higher than the industry average.
Folks will almost always say “that leaves out costs for software/hardware development, research marketing, etc etc.” But the reason these companies make these estimates is for the n+1 cost of the iPhone. That means the profit Apple makes on every extra iPhone above the fixed costs and an important metric to consider.
The report says Apple’s bill of materials for a 4.7-inch iPhone 7 with the base 32GB storage is $220.80. Apple sells this iPhone 7 for $649 at retail so there’s plenty of room for Apple to make money. Full breakdown of component costs after the break …
more…Filed under: Apple
