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  • Here's What Apple Reportedly Pays for the Individual Parts to Build an iPhone 6s


    There is a lot of speculation about the cost assessments of what it takes Apple to build an iPhone; although there is always a yearly estimate of what it costs Apple to build an iPhone based on parts, these estimates don't actually take into account the costs of engineering teams researching ways to make it better, the costs to manufacture the devices, or the costs to ship them out to retail stores and into customer's hands.

    On the other hand, the item-by-item breakdowns that we lay eyes on every year offers a somewhat comprehensive look at what Apple is spending on the individual components of the device on an item-by-item basis, for example, the costs to purchase displays, batteries, processing chips, wireless chips, sensors, cameras, and other equipment so that the device can be assembled in full. They're just estimates, so take them with a grain of salt.

    As reported first by Business Insider, this year's first estimate comes from Bank of America Merrill Lynch, pegging the cost of the parts to build an iPhone 6s at $234, which is about $11.20 more expensive than it was to purchase the individual components of the iPhone 6 last year.



    Quote Originally Posted by Business Insider
    The biggest part of that cost is $127 for semiconductor pieces, including $36 for the various cellular radios, $25 for the new 64-bit A9 processor, $22 for various sensors (fingerprint, NFC, and so on), and $20 for 64GB of flash memory. Other core components like the screen, camera, and battery will add up to $73, and the other stuff (like the case) will add another $33. The older models are cheaper for Apple to make, as the cost of their components has come down over time.
    Apple makes their money on the iPhone by charging $649 and up per unit. Carriers may offer the iPhone at a lower amount, such as $199, with a two-year contract so that the additional cost is made up over time. This is why carriers without contracts charge you significantly more for iPhones than those with contracts. The up-charge pays Apple's shipping costs, manufacturing costs, and taxes to sell the device, and keeps Apple in the black.

    Source: Business Insider
    This article was originally published in forum thread: Here's What Apple Reportedly Pays for the Individual Parts to Build an iPhone 6s started by Anthony Bouchard View original post
    Comments 4 Comments
    1. steve-z17's Avatar
      steve-z17 -
      I still think Apple should make all their phone's in the 128GB size since it only costs them like $4 to upgrade from 32-64 or 64-128 yet they charge us $100 for the extra memory. Especially at this point where we can record in 4K, the 16GB is basically useless.
    1. toyhaulerobs's Avatar
      toyhaulerobs -
      I'm sure there is more to it like shipping cost and importation costs. And maybe more that we don't know about. Just speculation here.
    1. Rcworship's Avatar
      Rcworship -
      Remember, Apple works for the shareholders, whose top priority is share value. So, strategic pricing earns more for shareholders (the bosses).
    1. Anthony Bouchard's Avatar
      Anthony Bouchard -
      Quote Originally Posted by toyhaulerobs View Post
      I'm sure there is more to it like shipping cost and importation costs. And maybe more that we don't know about. Just speculation here.
      Essentially, this cost is only for the parts to build the iPhone, and as we said in paragraph 1:

      "...these estimates don't actually take into account the costs of engineering teams researching ways to make it better, the costs to manufacture the devices, or the costs to ship them out to retail stores and into customer's hands."