Bloomberg: this is why the iPhone 8/Plus come at a higher price


The research arm of IHS, with its rich connection among smartphone suppliers in China, is probably the most credible name when it comes to bill of materials (BOM) calculations, or, simply, how much does a phone cost to make. This is why Bloomberg's Mark Gurman, a well-versed Apple analyst, cites the latest IHS Markit breakdown of the iPhone 8's BOM when determining if Apple is still making the same money out of an iPhone as before.

It turns out that, yes, the new high-end glass chassis and the 10nm Bionic chipset, as well as doubling the basic storage amount did add to the cost - 64GB iPhone 8 costs $247.51 to make, up from $237.94 for the 32GB iPhone 7 - but Apple bumped the price to $699 from $649, so in the end the BOM remains 35% of the retail price, just as before. As for the iPhone 8 Plus, the parts that go into it, and their assembly, cost $295.44, according to IHS, up from $270.88 for the iPhone 7 Plus, yet the new model costs more in the store, too.

Apparently, the new A11 Bionic processor with its homebrew graphics subsystem and AR co-processor costs $5 apiece more to make in bulk, despite the tens of millions of units that will be ordered by Apple. Doubling the storage from 32GB to 64GB is $6 more, while the new and improved camera set in the 8 Plus goes for $32.50. The most expensive part, as usual, is the display, which costs about $52.50 in the larger iPhone, but this year the Gorilla Glass enclosure is almost on par with the screen panel costs, at $51. Overall, the new chassis materials, the increase in basic storage, the faster chipset, and the new cameras are to blame for the extra fifty that Apple charges for the iPhone 8 and 8 Plus this year.


source: IHS via Bloomberg

Related phones

iPhone 8
  • Display 4.7" 750 x 1334 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 1821 mAh(14h talk time)

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30 Comments

1. MrShazam

Posts: 987; Member since: Jun 22, 2017

"APPLE INVESTED HEAVILY IN THE CAMERA CAPABILITIES OF THE IPHONE 8 PLUS" Yet it still can't top the competition in side-by-side comparison, still no OIS in the secondary lens, and still only mono audio recording in 2017: https://youtu.be/bwnSCjyhKuU What a joke excuse for being overpriced.

12. Bankz

Posts: 2543; Member since: Apr 08, 2016

The iphone X has OIS in both lenses though. But yeah, I get it, the iphone 8 has no reason to exist in the first place. infact, I wonder how people can justify getting the iphone 8 and not the iphone 7 tbh.

13. yann

Posts: 614; Member since: Jul 15, 2010

Invested in camera? When Apple will invest in sound??? The videos are so muffed, you can't hear anything. And after watching Supersaf about comparison with Note 8 - definately the iPhone is second.

15. Avieshek unregistered

Even Chinese OEMs like Vivo back in Asia has Hi-Fi DAC as standard. "When Apple will invest in sound???" I guess, the answer is, whenever they come to believe they can't incest in camera.

19. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

"incest in camera"? That's gross. You're gross. /jk

23. nightfury

Posts: 80; Member since: Dec 04, 2013

Lol haha

21. zebraman

Posts: 59; Member since: Sep 11, 2013

If you read the comments on that YouTube clip 95% of the over 2000 comments say that the camera on the note 8 is better than the iPhone.

30. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

The iPhone users always say we are trolling Apple. We are simply pointing out their shortcoming as they do with Android and they can't handle it like they say other can't. The iPhone is good at a lot of things, but not at the things that matter. Apple is now has made 4 models of phones with dual cameras and yet didn't put OIS on both as stated. Samsung releases its first phone with dual cameras and does it on first attempt. Samsung buys HK and provides premium headphones in the box with the very first phone afterwards Apple buys Beats 3 years ago and still no Beats in the box. But these guys as I rad posts are arguing over how fast an app opens and about a benchmark score that means little in the real world. iPhone 7 and 8 have stereo loudspeakers, but still only records in mono. What good is the stereo loudspeakers?

2. HillaryClinton2020

Posts: 191; Member since: Feb 08, 2017

Apple fans pay for premium, android fans pay for cr@p, no reason to argue this issue with them

4. redmd

Posts: 1935; Member since: Oct 26, 2011

I won't pay premium for a poop with eyes. WTH!

5. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

Says the person who ain't even used any devices other than Apple. Cràp mentality with Cràp knowledge.

6. MrShazam

Posts: 987; Member since: Jun 22, 2017

Such premium wall huggers you'll be getting: https://youtu.be/e-691mHL1to

16. L0n3n1nja

Posts: 1557; Member since: Jul 12, 2016

Pay a premium and get call quality issues, static, and an odd clicking sound. Lol

24. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Not to mention flexible phones (not by design), screens from 2014, batteries from 2014, features from 2010, and designs from 2013.

29. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Really? So when you compare the S8 and Note 8 and the Pixel and HTC U11 to the iPhone, which one really rings crap? Question? How do you have fast charging and not provide a compatible charger in the box? Everyone else does? Why are you forcing all devs to change their apps because you made a bad design decision? What exactly is premium about the iPhone that makes it more premium vs an S8? How is it the iPhone 8 has a 5.5" display, yet has a 40% smaller battery than other phones with a 5.5" display?

3. Plasticsh1t

Posts: 3106; Member since: Sep 01, 2014

"it's a value price for the technology you're getting" Tim Cook 2017.

10. submar

Posts: 713; Member since: Sep 19, 2014

False marketing at best.

7. Stranger

Posts: 73; Member since: Jan 19, 2017

According to dxo in normal shots the pixel is still superior but the zoom and broken feature on the iPhone make them overall superior to the pixel, but yeah it's the extra feature which people will more prefer, since nowadays every phones camera is capable of taking a good enough pic.

8. Sammy_DEVIL737

Posts: 1529; Member since: Nov 28, 2016

And how much profit is Apple earning ? Nowhere mentioned.

9. Loubielou

Posts: 603; Member since: Jul 11, 2012

Just seen the battery test and it just shows that Apple are just ripping its iPhone users off,how they get away with this is just amazing

11. osterrich21

Posts: 186; Member since: Apr 14, 2017

High prices and low sales!

14. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

- Mediocre battery life - Mediocre glass quality, false advertising as the strongest glass on a phone, S8 has stronger glass - Not the best camera - 4 year old design - More expensive and still over priced I know it has many pluses but come on. This year Apple seriously went full f**k you with iPhone 8.

17. MrShazam

Posts: 987; Member since: Jun 22, 2017

Actually the iPhone 8 (not the 8+) glass is really durable as can be seen in the controlled drop test below, more durable than the S8: https://youtu.be/S7QS4ogH-qY So, that their marketing isn't blatantly false as I previously thought after watching the 8+ vs Note 8. https://youtu.be/unTZYFHExRs

20. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

Drop tests are too varied. Just buy a case or keep your phone in your pocket when not needed.

26. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

No drop test is valid. The problem is simple. GLASS BREAKS! If you phone doesn't break the first time you drop it, consider yourself lucky because that is all it is. Apple glass is not any more durable vs anyone else's. What will matter is how you drop it, where you drop it. If you intently set out to damage a phone, you simply will. Taking a phone of any price and just dropping it for no reason is dumb and proves only that they are idiots and have money to waste thanks to people watching their pointless videos.

28. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Fast charging with no fast charger included. Removed the headphone jack for no valid reason. Because they removed the FPS, now we don't have a secure way to unlock the phone with a higher rate of accuracy and the notch is a bad idea for devs. But the phone got a 9.2?

18. Guaire

Posts: 886; Member since: Oct 15, 2014

$8 higher BOM cost is not the reason of $50 of retail price bump. After all 8 Plus got only $30 retail price bump for $24.56 BOM cost increase. iPhone 7 line had 3 different storage options. 32GB, 128GB and 256GB. On the other hand iPhone 8 duo only has 64GB and 256GB models. At those phones every cost you can possibly think of is same except NAND storage unit. And that costs only $0.2 per GB. Past year each time Apple sold an iPhone 7 128GB, they were making $81~ more per unit compare to 32GB since while building them costs only $19.2 more and they are getting $100 more. You get the picture. Also that's why iPhone has never been supported external storage. It would cripple their profits unless they would make a significant price bump. For compelling loyal Apple fans to spend more money, minimum storage should have been compellingly low. 32GB at 2016 and 16GB at 2015 was sufficiently low. Now they bumped the minimum storage to 64GB. I don't know exact reason, but maybe they felt like they couldn't get away this time with 32GB. Anyways 64GB is not sufficiently low for compelling a significant portion of consumers to buy a hypothetical 128GB model. So there is no 128GB this time and they had to increase profit margins of minimum storage model.

22. PhoneInQuestion

Posts: 496; Member since: Aug 20, 2017

This. Apple is so goddamn innovative they reinvented the concept of less options with worse trade-offs. Of course brand loyalists are also at fault here, stop thinking every time a new phone comes out that automatically validates a sordid desire to upgrade, there's nothing wrong with running your phone into the ground before the next one comes out. Tim Cook may be a smart businessman, but he's an arrogant fool who thinks he could Out-Steve Steve Jobs. I don't care if he gets publicly chewed out by other CEO's or celebrities, he deserves every bit of ridicule from both fans and detractors alike.

25. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

If we can justify the price of the iPhone 8 going up then why can't their be the same done for other products that also had hardware upgrades and increased price? The iPhone 8 has improved cameras, more glass which is more expensive to make, has a costlier display and more. Other phones also have gotten bigger, has a more expensive design, more expensive display, an extra camera, more ram, more storage and more and their price went up too.

27. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

Why is no one talkign about the fact, the iPhone 8 supports fast charging, but Apple is not providing a fast charger in the box? What good is a new feature if the OEM doesn't provide a way to use it out the box? No OEM provides a wireless charger, even though their phones support wireless chargers. They include a wall charger because this is the most common way to charge any product. But the charging brick will support the fast charge option. How is it Apple is allowed to get away with not providing it? One reason could be the fact, accessory makers have to license from Apple the ability to make an Apple charger, and Apple would make more money on the side vs providing one. But since they are increasing these phones costs, why not also include such?

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