The worth applies only to the 32 GB iPhone 7 and is predicated on preliminary findings.
At nearly $225, the 32 GB iPhone 7 is comparatively expensive, IHS says. In fact, the corporate noted during a statement in December that Apple’s iPhone 6s, which launched last year, cost Apple (APL) $36.89 less per unit, or $187.91, too supply.
Total BOM costs for the iPhone 7 are more in line with what we’ve seen in tear downs of recent flagship phones from Apple’s main competitor, Samsung, therein the prices are above in previous iPhone tear down analyses,” said Andrew Ransweiler, senior director of cost bench marking for IHS.
“Total bill of fabric costs for the iPhone 7 are more in line with what we’ve seen in tear downs of recent flagship phones from Apple’s main competitor, Samsung.
There in the prices are above in previous iPhone tear down analyses,” said Andrew Ransweiler, senior director of cost bench marking services for IHS Mark it, during a statement.
“All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are above within the past.” At $43 a bit, the display on the iPhone 7, is the costliest component.
Intel’s LTE modem, and other chips cost $33.90, while Apple’s A10 Fusion processor is merely the third costliest piece of hardware on the iPhone.
Still, don’t feel regrettable for Apple: the iPhone 7 IHS evaluated costs $649, giving the corporate a profit of quite $424 on each unit it sells.
IHS has yet to gauge other iPhone 7 versions, including the larger iPhone 7 Plus, to work out what proportion Apple is making on the sale of these units. IHS estimates that both rear and front-facing cameras cost a combined total of $19.90.
The smartphone comes with a design that’s almost like its predecessor the iPhone 6s, but features a much-improved processor referred to as the A10, also as new cameras.
The iPhone 7 also comes with a replacement Home button and has eliminated the headphone jack. Each new update brings new manufacturing challenges which will often boost the worth of production for a while.
However, whether Apple is really making the maximum amount as IHS says remains to be seen. IHS itself says that its findings are preliminary and will change when it completes its final review later this year.
While which will not sound sort of lot, it’s the foremost expensive standard-sized iPhone Apple has ever made, as our chart illustrates. That said, Apple has long shrugged off estimates.
His comments followed those made by then-CFO Peter Oppenheimer, who suggested in 2010 that third-party bill-of-material reports were inaccurate. Modern manufacturing isn’t typically defined by craftsmanship.