iPhone 7 components only cost Apple $220

iPhone 7 components only cost Apple $220


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The iPhone 7 features some of the most incredible tech found in a smartphone but the components only cost Apple about $220.

Including the basic manufacturing costs of $5, Apple’s total bill to manufacture the 32GB iPhone 7 reaches a total of $224.80, according to a teardown by IHS that found the device is $36.89 more expensive to produce than the iPhone 6s.

“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 for IHS.

At $43 a piece, the display on the iPhone 7 is the most expensive component. Intel’s LTE modem and other chips cost $33.90, while Apple’s A10 Fusion processor is only the third most expensive piece of hardware on the iPhone.

IHS estimates that both rear and front-facing cameras cost a combined total of $19.90. The new 1,902 mAh battery only costs $2.50. Minor components such as the Taptic Engine, antennas, connectors and speakers likely only cost a total of $16.70.

A full price breakdown of the iPhone 7 Plus still hasn’t been conducted, but with its bigger display, three cameras and extra RAM it will undoubtedly cut Apple’s margins a little thinner.


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