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

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

Related phones

iPhone 7
  • Display 4.7" 750 x 1334 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A10 Fusion, Quad-core, 2340 MHz
  • Storage 256 GB
  • Battery 1960 mAh(14h 3G talk time)

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107 Comments

1. Xboxsucks69

Posts: 28; Member since: Sep 01, 2016

Does it explode? My kids play with my gorgeous iPhone 7, so i play whatever for safety

10. IAMBLCKJ3ZUS

Posts: 399; Member since: Sep 29, 2015

No but hiss and pops. Don't want your kids getting bitten by a snake.

91. xdza1979

Posts: 296; Member since: Aug 08, 2015

Lol. Best comment on the "Hess gate"

96. cheetah2k

Posts: 2138; Member since: Jan 16, 2011

If you fruit users didn't feel raped before, you'll be feeling butt raped now. ~250% mark up.. not bad

14. binyameen

Posts: 43; Member since: Aug 25, 2011

Same here, personal safety first.

16. zeeBomb

Posts: 2318; Member since: Aug 14, 2014

From like 21x dollars to 292 dollars. Apple made some big strides lately.

19. sissy246

Posts: 6884; Member since: Mar 04, 2015

You let your kids play with a $650+ phone, yeah you really smart

29. binyameen

Posts: 43; Member since: Aug 25, 2011

So what do you propose to be done with a 650 buck phone, I mean just have a look clean it, brush it and leave it inside a safe. Oh yeah! inside a safe as they explode :D LOL

50. trojan_horse

Posts: 5868; Member since: May 06, 2016

Nah, he was just being seizing this oportunity to bash Sammy. Don't believe him.

37. cdm283813

Posts: 424; Member since: Jan 10, 2015

Everybody on the planet knows that the Note 7 is under recall. The comments are now childish. The Note 7 is in bad shape so it's time to move on.

45. Hallucinator

Posts: 390; Member since: May 24, 2010

Yeah but you still have people saying You're holding it wrong how many years later? Also childish and not even remotely funny. Fanboys/girls on both sides have serious issues.

51. trojan_horse

Posts: 5868; Member since: May 06, 2016

The point is, Apple has never issued an official recall for the iPhone 4, so the antennagate issue hasn't been official closed. But, the Note7 battery issue has been subject to an official recall, so after the replacement units, the matter will be officially closed. Apple put the blame on the consumsrs ("You're holding it wrong"). Samsung's released a Public apology and did a recall. See the difference? So, the antennagate case is still open, but the Note7 case will be closed after october 21! Therefore, since the antennagate issue hasn't been officially closed, it's still open for criticism. So, it will be childish to bash about the Note7 battery issue after the replacement units, but it still makes sense to criticize the antennagate issue today! It's about logic, not about fanboyism.

61. mrochester

Posts: 937; Member since: Aug 17, 2014

There was no issue to recall the iPhone 4 for yet people are *still* talking about it today. Apple quite clearly told people not to block the antenna and the phone would operate normally. They even gave people free cases, which they didn't have to do. Samsung, on the other hand, has a massive and dangerous issue with exploding Note 7s. That's likely to be talked about for many many years to come and has significantly damaged Samsung's reputation.

92. tedkord

Posts: 17038; Member since: Jun 17, 2009

Apple did all they needed to do to rectify the antenna situation. The only issue is the time it took them to arrive at that, and the lying they did in between, not to mention they've never acknowledged the issue.

84. Hallucinator

Posts: 390; Member since: May 24, 2010

That is an absurd attempt to justify your point. Your are saying I can make fun of you but I said Im sorry so you can't make fun of me. You are too funny.

88. trojan_horse

Posts: 5868; Member since: May 06, 2016

There's no absurdity in my post #51. The subject of criticism about antennagate isn't the antenna issue itself, but how the said issue was handled. Apple blamed the consumers, instead of admitting their fault. Samsung apologized and owned up to the Note7 battery issue. Issues happen, but when you own up to it, you deserve respect, but if you deny it and put the blame on someone else, then you deserve criticism.

103. ososucre

Posts: 25; Member since: Aug 12, 2013

I def. agree with you. If Samsung didnt responsible, they would do the same as apple did on iPhone 4. Samsung might say "you charge it wrong. We will send the updates to make battery stuck to 60% and no need to recall" Samsung has proved that they took all the responsibility

97. lyndon420

Posts: 6363; Member since: Jul 11, 2012

Maybe you're forgetting that it was a design defect, and the CEO of apple tried to put the blame on their customers. Sure they masked the problem with a case, but still lol. Apple tries to pass themselves off as a luxury brand with products that are made to perfection, and prices those products in such a way to give the false impression that you're actually getting something of value over the competition....but we all know that isn't true right? I've noticed that apple doesn't use the 'it just works' slogan for awhile now and I can see why - hissing and popping sounds, headphones that suck after 5 minutes etc. We're to expect issues like this from Samsung, LG, htc, Sony, etc...but not apple...right?

108. yann

Posts: 604; Member since: Jul 15, 2010

yea, you're right. Steve Jobs even made press conference to explain that all phones in the world lost some bars when you hold them, but.... But the truth was that the engineering design was wrong. Apple never admit it. They just send free bumper cases. That's all. And you are exactly right about "It just works." Now Apple is bragging with best performance and benchmarks. that is something that Steve Jobs never done in the past, but maybe because the Mac was slower than PC - From that came "It just works". Now we see low res display on iPhone - to have better results in benchmarks and load games faster on that resolution. Yes A9 was great and A10 is even better, but still. The iPhone also lags from time to time, some sounds like dying, freezing etc... But official Apple user will say that this is not true. And I've seen it with my own eyes. But anyway - Apple make excellent marketing hype about their products and that is driving the sells up and the profit also. From business point of view, Apple is great company. And to be honest - Android is a lagging platform with this VM. Never like it, despite it is highly customizable. It is pity that now on the market is only high restricted and crappy iOS and lagging Android. I hope NOKIA to bring one new and stable Android on the market, but it is just a dream.

60. prakash_shewani

Posts: 25; Member since: Feb 05, 2016

perfect! iphone can only be used as a toy for kids

98. lyndon420

Posts: 6363; Member since: Jul 11, 2012

Yup...pretty sad. We have apps to remind adults they have children that need attention, so maybe we need apps to remind the kids that they have parents in need of parenting skills.

2. Iodine

Posts: 1470; Member since: Jun 19, 2014

Yep, guestimates. What's the sense in even making them ? Btw Jet Black casing for 22$ What ?!

3. HugoBarraCyanogenmod

Posts: 1408; Member since: Jul 06, 2014

Waiting fanboy to comment Apple need to take r&d cost into account to be that expensive, which Apple never has r&d at all. But I appreciate Apple taking cloning cost into account as we need time and sweats to figure out how to copy others.

12. Hallyu

Posts: 790; Member since: Jul 21, 2015

Talking about R&D while some Chinese makers like Xiaomi, Oneplus... don't have it either. To say the truth, both Apple and Chinese newbies don't have tech.

4. yyzamin

Posts: 375; Member since: Aug 26, 2015

Android trolls licking their lips... TBH I don't care how much profit Apple makes they are competitively priced in comparison to all the main OEM's flagships.

15. binyameen

Posts: 43; Member since: Aug 25, 2011

Hell yeah and it doesn't explode either.

22. sissy246

Posts: 6884; Member since: Mar 04, 2015

Iphones have cought fire and even killed

27. binyameen

Posts: 43; Member since: Aug 25, 2011

But they didn't explode, to be more precise.

38. Unordinary unregistered

Every day. They didnt explode evey day. Lol

39. Wiencon

Posts: 2278; Member since: Aug 06, 2014

14 posts since 2011? Which banned troll are you?

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