IHS: iPhone 7 cost to manufacture is higher than iPhone 6s, but profit margin still healthy
The iPhone 7 starts from $650 in the shop, but to the $225 BOM estimate we have to add research, marketing and various administrative expenses to arrive at the true cost of a unit for Apple. These are notoriously hard to estimate, though the chart below, coming from a reputable analyst, give us a good ballpark estimate of about 12% for both at the beginning of the year. Even if we are generous and peg the operational, research and engineering expenses to be 20% of the final iPhone price on top of BOM, that still leaves a hefty 40%+ margin for Apple from each iPhone 7 unit, not bad for a phone that will sell in the tens of millions in the next year or so.
source: IHS, AsymcoApple R&D and SG&A (operational expenditures) as percent of sales. pic.twitter.com/gePbArsUeT
— Horace Dediu (@asymco) 2 май 2016 г.
Things that are NOT allowed: