iPhone SE only costs Apple $160 to build

By

iPhone SE
A new iPhone SE could be coming soon.
Photo: Sam Mills/Cult of Mac

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.