Manufacturing Cost of iPhone 7

Apple’s latest flagship smartphone iPhone 7 has been arrived in markets, with a variant iPhone 7 Plus. iPhone 7 having a bigger battery or storage than its predecessor has received mixed reviews from critics. But many have criticized Apple for not using headphone jack in iPhone 7. Research firm IHS Markit have recently estimated the actual cost to manufacture an iPhone 7 (32 GB Device). According to their estimations, iPhone 7 Materials Costs Higher than Previous iPhone Versions

iPhone 7 Manufacturing Cost:

According to IHS Markit’s preliminary estimations the total bill of materials or cost of an iPhone 7 equipped with 32 gigabytes (GB) internal storage is $219.80. Add further $5 in account of basic manufacturing cost / labor cost of a single iPhone unit. So, the total manufacturing cost of an iPhone 7 with 32 GB of internal storage is $224.80. This manufacturing cost applies only on 32 GB variant of iPhone 7 and based on preliminary findings of IHS. The firm quoted:

“This manufacturing Cost of iPhone 7 is higher than the previous iPhone devices.”

According to estimations of IHS about the manufacturing cost of iPhone 6s in December last year,

“The total manufacturing cost of a single unit of iPhone 6s was $187.91, which was $36.89 less than the current manufacturing cost of iPhone 7.”

These estimates shows that the iPhone 7, without the headphone jack still cost higher than the previous iPhone models. However, these figures are based on the preliminary findings of IHS Markit.

Apple’s Profit per iPhone 7:

Despite a little higher manufacturing cost, Apple is still earning a large profit from a single unit of iPhone 7. The price of iPhone 7 (32 GB internal Storage) is $649, giving the company more than handsome profit of approximately $424 on each unit it sells.

IHS Markit is very well known firm in analysis and information to support the decision making process of businesses. IHS has yet to evaluate other iPhone 7 versions, including the larger iPhone 7 Plus, to determine how much Apple is making on the sale of those units.

Source: IHS Markit