Here's how much it costs to build the iPhone 7


It's been a few days since Apple launched the new iPhone 7 and iPhone 7 Plus, its two best iPhones so far with waterproofing, new Apple A10, improved cameras, longer battery life, stereo speakers, but with no headphone jack, and you might be wondering: how much does it actually cost to build a phone that is sold for prices ranging from $650 to $970?

While it's still too early to see the exact costs of each component, CNN Money is giving a neat approximation that is likely based on common prices for popular smartphone components.

While looking at the iPhone 7, it breaks down the cost of each part as follows:

  • screen $37
  • battery $4
  • cameras $26
  • logic board $74
  • speakers: $11.50
  • casing: $22
  • other parts: $117.50
The other parts includes all the tiny little sensors, baseband and so on, but out of all the major components, it is the logic board and the screen that are the two most expensive parts for Apple.

Altogether, the alleged cost for all the parts required to build a 128GB model of the iPhone 7 is estimated to be $292, while the device retails for $750 at its full retail price.

This would mean that the cost of the iPhone is just 39% of its actual retail price. Of course, there are so many ifs and whys to that equation and it does not seem to count the price of labor behind the actual building of the phone, but also its software, the marketing costs and other parts that ultimately combine together to form a product's final price. Nonetheless, it's something interesting to know.

source: CNN Money

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