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  • The components of the Apple iPhone 6s cost just $245 in total

The components of the Apple iPhone 6s cost just $245 in total

The components of the Apple iPhone 6s cost just $245 in total
Starting at a tidy $649 and working its way up to an eye-watering $949 for the top-end 6s Plus, the new iPhone line costs a fair wad. It's well-known that Apple makes higher profit margins than many of its peers, and thanks to a tear-down of Cupertino's latest handsets, we have some idea as to how much the hardware is worth when dissected. According to the folks at Teardown, the components of the 64-gig iPhone 6s equate to a cost of $245. While such a figure doesn't take into account Apple's numerous other outlays such as manufacturing, design and marketing, the new iPhone clearly contributes heavily towards Apple's apparent license to print money

The teardown is drawn through estimates, so the $245 number isn't an exact cost, but close enough. It should also be mentioned that the costs cover the 64 GB iPhone 6s, which will set you back $749 off-contract. Material costs of different configurations, as well as the larger iPhone 6s Plus, will certainly vary. The teardown found that raw materials cost $16.50 more than those of the corresponding iPhone 6 from last year, thanks in no small part to the new SoC, camera, and the much-vaunted 3D Touch.

With 13 million units shifted over the first weekend alone, plenty of people seem happy to pony up the sizable asking price to own Apple's most prized asset. The fact that China, for the first time, has retailed the device from day one must be partially credited with the record-breaking sales. Nevertheless, even though the jury remains very much out on the Apple Watch, the company's most recognized outlet still appears to be doing the business. 

If you'd like to see the carcass of the latest iPhone being picked at in grave detail, do ensure that you check out the earlier teardown article.

source: Teardown via MobileSyrup

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posted on 29 Sep 2015, 09:27 3

2. zeeBomb (Posts: 2295; Member since: 14 Aug 2014)


IThe apple comments...the techie essays...iPhoneArena's evolution...I can sense it a mile away.

posted on 29 Sep 2015, 09:27

3. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)


Big earnings for Apple. iPhone fans are looted more.

posted on 29 Sep 2015, 09:27 1

4. Derekjeter (Posts: 1054; Member since: 27 Oct 2011)


Here come the sh!t talkers.....

posted on 29 Sep 2015, 09:32 1

9. zeeBomb (Posts: 2295; Member since: 14 Aug 2014)


Jeter man...you were soo good. You didnt have to retire.

posted on 29 Sep 2015, 09:29 10

5. Rydsmith (unregistered)


I hate articles like this, they ignore the substantial costs of making new products.

- R&D
- Wages and Salary
- (slave) labor
- Shipping
- Freight
- Overhead
- Maintenance
- Support

It's not just the BoM (Bill of Materials) that makes up the cost of a phone.

posted on 29 Sep 2015, 09:35 2

11. hound.master (Posts: 1044; Member since: 27 Feb 2015)


Yeah but no one get as much profit as Apple can surely go down in prices.

posted on 29 Sep 2015, 10:09

23. Rydsmith (unregistered)


Why should they? The market has shown what the consumer is willing to pay. If it's too much people won't buy it (Xbox One at launch). There is high dean for iProducts and Apple has no reason to reduce prices if the public is willing to buy it.

It's a company made to get profits, not a charity.

posted on 29 Sep 2015, 10:09

24. Rydsmith (unregistered)


High demand*

posted on 29 Sep 2015, 10:41 2

33. willard12 (unregistered)


You write all that as if no other company has these costs. They do. And some of them spend an exponential amount more on R&D than Apple. So, I'm not sure why the bill of materials data ignores everything else.

posted on 29 Sep 2015, 09:57 2

16. Supraman21 (Posts: 376; Member since: 09 Jun 2010)


Yes I hear this argument all the time. Even with all of those costs it doesn't bring the price of the phone anywhere near the $6-7-800 these phones go for.

posted on 29 Sep 2015, 10:05

21. Rydsmith (unregistered)


It's not an argument it's a fact. Companies exist to increase shareholders wealth (literally). Apple is a premium luxury brand and the price the consumer is willing to pay has been dictated by the market.

And no it doesn't bring that price to the $600-800 mark, but the consumer purchasing it for that much as well as the fact that the company must reinvest the money into new products as well as increase the wealth of shareholders does.

posted on 29 Sep 2015, 11:16 1

43. willard12 (unregistered)


I agree with almost all of that. Except, Apple is "perceived" as a premium luxury brand. 17 year-olds working at McDonald's can get an iphone. But, they usually don't carry a Prada wallet and drive a Mercedes. But, those same teenagers believe their $245 device is high-end. In fairness to them, many adults believe the same thing. Luxury brands usually don't offer trade-in programs, subsidies, and monthly payment plans. In the end, a $245 device is a $245 device. Nothing more, nothing less. Apple has 45% market share in the US. That's not exactly exclusive.

posted on 29 Sep 2015, 12:02

47. Rydsmith (unregistered)


That's why Apple is best Marketing company in the world. Marketing is all about perception and increasing the consumer importance of that perception especially when it aligns with your core competencies.

And luxury and premium do not mean exclusive. The PlayStation 4 is both a premium gaming device and a luxury device as it is far from needed; yet it is selling exceptionally well.

Apple is a luxury brand. The charge a high price so that the consumer has the "privilege" of having that Apple logo on the back of their item (phone, laptop, tablet). The brand equity of Apple is #1 for a reason and it will take quite some time before they are knocked down.

posted on 29 Sep 2015, 10:32

29. Berzerk000 (Posts: 4275; Member since: 26 Jun 2011)


"While such a figure doesn't take into account Apple's numerous other outlays such as manufacturing, design and marketing,"

Literally in the first paragraph.

posted on 29 Sep 2015, 09:31 1

7. LiquidGalaxy (Posts: 332; Member since: 03 Jul 2013)


Another pathetic article from a site that, supposedly, should know that a product is worth more than the sum of it's parts. Do the authors here know anything about tech whatsoever?

posted on 29 Sep 2015, 09:42

12. 7a6d3e7 (Posts: 22; Member since: 14 Sep 2015)


"According to the folks at Teardown, the components of the 64-gig iPhone 6s equate to a cost of $245. While such a figure doesn't take into account Apple's numerous other outlays such as manufacturing, design and marketing, the new iPhone clearly contributes heavily towards Apple's apparent license" I m guessing they added this after you posted. But you may not know what I said Cos you probably saw the first line and started replying.

posted on 29 Sep 2015, 10:00

20. medtxa (Posts: 1311; Member since: 02 Jun 2014)


Sure the author know. This is just news.

posted on 29 Sep 2015, 09:48

13. torsta (Posts: 1; Member since: 29 Sep 2015)


In Norway we have to pay almost 1000 USD for the iphone 6s 64gb...

posted on 29 Sep 2015, 10:33 2

30. buccob (Posts: 2677; Member since: 19 Jun 2012)


b!tch please.....http://www.businessinsider.com/venezuelan-inflation-leads-to-a-47000-iphone-2015-6

We have to pay the equivalent of $47000 for an iPhone 6 (not even the 6s)

The crisis here is worst than in Greece.

posted on 29 Sep 2015, 09:57 1

17. Malhar (Posts: 49; Member since: 29 Dec 2012)


https://www.youtube.com/watch?v=t4px_MAm8is

posted on 29 Sep 2015, 09:57

18. medtxa (Posts: 1311; Member since: 02 Jun 2014)


What that's not bad price. Apple is actually more bang per buck than HTC or Sony.

posted on 29 Sep 2015, 09:59 1

19. gersont1000 (Posts: 456; Member since: 13 Mar 2012)


Of course there are many more costs other than the BOM, but it probably is not even another $100. Apple rapes their customers and that's why they have such an insane amount of profit. And while I hate Apple for their business practices and tight control, Samsung and Sony are just as guilty of this same practice. Samsung even makes most of their own parts so in theory they should be able to make even more money on each phone, since they are selling at basically the same prices (although iPhone prices stay the same until the next phone, while Samsung prices go down fast like most Android phones).

posted on 29 Sep 2015, 10:47 1

37. Taters (banned) (Posts: 6474; Member since: 28 Jan 2013)


Please....Samsung phones are genuine state of the art not marketed fake state of the art like the iPhone. They use the most expensive components out of all manufacturers period. That's not subjective, that is a fact.

Plus making their own parts don't save them money when it all goes back into R&D and billion dollar state of th art factories. They had to build one just for the curved display for the edge devices.

Don't be naive like a typical Apple fan.

Just think about it. If what you said was even remotely accurate and look at the numbers the GS6 sells at, probably like 20 million or so right now, maybe more. They wouldn't be declaring only a slight yoy increase and their stock wouldn't be dropping, and compare that to Apples numbers and their 200 billion liquid cash. It doesn't take a rocket scientist that Samsung profit margins ar nowhere near as high as the iPhone or they would be happy dancing on the streets saying fuck you I am Samsung.

posted on 29 Sep 2015, 10:07

22. Nathan_ingx (Posts: 4240; Member since: 07 Mar 2012)


The only species of apple that brings health problems.

posted on 29 Sep 2015, 10:55

39. PorkyBurger (Posts: 585; Member since: 18 May 2013)


Because of that one kidney they sold to get one. /jk

posted on 29 Sep 2015, 11:13

41. TechieXP1969 (Posts: 13831; Member since: 25 Sep 2013)


How much does Apple pay?
S6 Edge+ costs $290 if you bought all the parts, how much does it actually cost Samsung to make?

Their costs are lower than retail components pricing.

How can Apple have an average of $660 per sale? Because it costs them less than $200 to make a phone as does Samsung.

posted on 29 Sep 2015, 12:34

49. flavius22 (Posts: 208; Member since: 23 Aug 2015)


1 out of 5 phones... is an Iphone. 92% of the total proffit in this business is made by Apple. Its a good phone, but doesnt have the cutting edge technology

posted on 29 Sep 2015, 12:49

50. Exige85 (Posts: 143; Member since: 12 Aug 2015)


I assumed it cost less to make, like $150 to $200, Apple to VERY good spending cheap and selling expensive. Its all about the image. In non many countries the Iphone (Apple) brand is not about or for commoners that why folks spend big toe money, for average specs (but credit where due, their products are good).

posted on 29 Sep 2015, 18:45

51. 99nights (Posts: 1152; Member since: 10 Mar 2015)


Why are people so surprised. It's around the same price every year pretty much.

posted on 29 Sep 2015, 23:09

52. mudcat62 (Posts: 11; Member since: 15 Sep 2015)


The luxury value of IPhones is the user experience. The 6s is a true computer. Yes Apple uses Samsung components, they are a parts supplier. Apple is a design and engineering company. Samsung is a manufacturer. Apple is a luxury brand, you don't see the wealthy use Samsung. You see more people come to Apple now, that you can lease or make installment payments. That's why you see more switchers from Android to Apple. They wanted IPhones but couldn't afford to buy outright.

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