When it comes to building iPhones, it really pays to use old parts.
The iPhone SE only costs Apple about $160 to build and assemble, based on the latest findings from an IHS teardown that discovered one the display, Apple cut costs down to less than half by using the same four-inch screen found on the iPhone 5s.
When the iPhone 5s came out in 2013, the display cost $41 per unit. On the iPhone SE the price on that same LG Display has dropped to just $20.
Where Apple really rakes in the cash though is storage upgrades. IHS analyst Andrew Rassweiler says it only costs Apple $170 total for a 64GB unit, yet it charges a heavy premium for the extra space.
“The potential profit margin on the 16-gig phone is lower than it is on the 64-gig version,” Rassweiler said. “Apple is selling the phone with the higher storage for $100 more but only about $10 in additional cost.”
Other costly parts include the new cellular chip found in the iPhone 6 from Qualcomm that’s priced at $15. Apple’s own A9 processor adds $22 to the price tag.
The total costs on the iPhone SE is the lowest on any new model in years. The iPhone 5s parts and assembly cost about $191, while the iPhone 5 cost $168 and the iPhone 6s Plus components costs up to $236.
The iPhone SE went on sale on March 31st at a starting price of $399 for a 16GB model. Check out Cult of Mac’s iPhone SE review for a full breakdown on the pint-sized device.
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
8 responses to “iPhone SE only costs Apple $160 to build”
I’m certain there was some other know-it-all analyst who claimed Apple was losing out on larger profits with the iPhone SE. I don’t know which analyst is right but people really need to stop guessing about what Apple is doing or making or whatever. They don’t know a damn thing about what goes on at Apple. It’s really sickening the way analysts make up whatever they want, try to pass it off as the truth in order to manipulate Apple’s share price. It’s just plain dishonest.
It absolutely disgusts me that Apple charges an extra $100 for something that costs them only $10. They should be ashamed of themselves.
Oh, I’m sorry, please tell us about the non-profit where you do 40 hours of volunteer work a week with your time, since apparently you don’t charge for your services to humanity!
Stupid troll article by someone who obviously hasn’t taken a single business or accounting course. A lot more goes into a company’s expenses than parts, unless you are Santa! Dumb!
500 and 600 euros in Finland is way to much!
$550 and $650 in Cambodia is way too much too. It’s losing the idea of Apple is trying to make cheaper iPhone! :(
Interesting article, but probably totally wrong. Tim Cook, CEO of Apple, has been quoted as saying recently that blogger estimates of Apple production costs are wrong, by far. At best, the bloggers are guessing. Only Apple knows the total cost of building an iPhone or iPad. The take away here is, as always, don’t believe everything you read.
And somehow $399 for a lower speced phone is a generous bargain? Apple makes good phones. I get it. They are beautiful to handle, does the job done. But besides the lame arguments by the fanboys, its hard to deny that they are wringing us off our last penny for something that ceratinly isnt worth that wad of cash.