Apple could be shelling out $219.80 to make each 32GB iPhone 7 according to an initial estimate calculated by research firm IHS.
Looking at the entry-level iPhone 7 32GB, the firm broke down the potential cost of each of the various components.
IHS Technology noted that the 4.7-inch IPS LCD display costs around $43.00, while the A10 Fusion chip costs $26.90.The 2GB memory paired with 32GB storage costs $16.40, while the two cameras add up to $19.90.IHS says the total component cost of iPhone 7 is actually higher than the iPhone 6s, by about $36.
“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”
The 32GB iPhone 7 sells for $649 without a contract.
View the full cost breakdown analysis below:
∗The teardown price does not take into account the time and money spent on research, software, and transport, among others.