Teardown shows Apple once again pays $200 to build an iPhone

Teardown shows Apple once again pays $200 to build an iPhone
Last week, we saw the first teardown of the new Apple iPhones, and now the estimations have come in on how much it costs Apple to build each new handset. In the past, the estimated cost of building an iPhone has never been over $200 (estimations ranged from around $188 to $199 for various iPhones), and while the iPhone 6 Plus reportedly cost Apple more than that to build, the iPhone 6 is right on target.

IHS has done the math, and is saying that the parts and labor to build an iPhone 6 is somewhere between $200 and $247, while the iPhone 6 Plus costs somewhere in the range of $216 to $263. The range of costs covers the various storage tiers. So, the 16GB iPhone 6 costs Apple $200 to build, and is then sold for $649. And, when you pay an extra $200 for the 128GB storage model, it is only costing Apple $47 for the larger NAND flash drive. This means Apple has profit margins of 69-70% on the new iPhones, and given the rate they are selling, that should bode well for Apple's quarterly earnings. For comparison, the Samsung Galaxy S5 cost about $256 to build and sold for $599.

As per usual, the most expensive component of the new iPhones are the displays. The iPhone 6 display and touchscreen costs $45, while the larger 6 Plus display and touchscreen costs $52.50. The A8 processor has had mixed results on benchmarks, but it has wowed researchers based on its technology alone. The A8 is built using a 20-nanometer process, meaning less battery draw, but it somehow is also more powerful. The A8 is estimated at $20 per chip, which is just $3 more than the cost of the A7. 

source: Re/code

Related phones

iPhone 6
  • Display 4.7" 750 x 1334 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A8, Dual-core, 1400 MHz
  • Storage 128 GB
  • Battery 1810 mAh(14h 3G talk time)
iPhone 6 Plus
  • Display 5.5" 1080 x 1920 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A8, Dual-core, 1400 MHz
  • Storage 128 GB
  • Battery 2915 mAh(24h 3G talk time)

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83 Comments

1. CX3NT3_713

Posts: 2363; Member since: Apr 18, 2011

$200 lol sold at $699

15. Finalflash

Posts: 4063; Member since: Jul 23, 2013

That is the biggest advantage of an iPhone. Ask any ifan, it isn't about what you get from apple it is about what you give to them. Apple making massive profits off your back is the greatest advantage of the apple ecosystem. It is the last thing left that apple is ahead in. Now if only they could somehow patent profiteering and then all apple fans can rejoice on a permanent advantage instead of ones they keep losing to the competition.

39. Slammer

Posts: 1515; Member since: Jun 03, 2010

It amazes me that tech enthusiasts seemingly, are the most ignorant to how this company has operated for 30 years. Looking pretty doesn't equate to strudy. And a product that is carried an average of 14 hours a day, shouldn't be delicate. In the 28 years of owning cellphones, I have never once had a problem with plastic. Not once. In fact, my Evo 4G is still going strong today for my Nephew. John B

48. palmguy

Posts: 987; Member since: Mar 22, 2011

Gave my son my 2011 sprint moto exprt(moto pro for vz). Put it on page plus. It has been dropped a million times without any case. A lil chipped around the screen but works just as well as the day I received it.

57. TheMoltenD

Posts: 109; Member since: Jul 13, 2014

Steve Jobs was the greatest con artist in history, make them a device with other companies technology, make them feel like they are special for owning it and sell it for 2x what the competitors are selling similar devices for.

16. irbaaz

Posts: 175; Member since: Mar 27, 2014

And what about R&D and advertisement ...

27. vincelongman

Posts: 5755; Member since: Feb 10, 2013

Also don't forgot most important feature, the Apple logo

52. engineer-1701d unregistered

what r&d its a old m8 prototype that was not used. why do you think the camera lens sticks out so much.

68. Af1rPA

Posts: 712; Member since: Jun 12, 2014

The same R&D team who allowed the iPhone 6 to bend in peoples pockets? $0.50 on R&D.

28. rf1975

Posts: 264; Member since: Aug 01, 2011

But still lessthan Google glass margin.

31. EnigmaticPsychotic

Posts: 70; Member since: Nov 26, 2013

I think the Glass pricing was more about getting the right people on to the new ecosystem.

34. Finalflash

Posts: 4063; Member since: Jul 23, 2013

iFans don't get the fact that glass is largely a beta and development release right now for a moon shot project and future tech. They see the large price tag and feel jealous that they can't pay that kind of money to apple for tech from 5 years ago.

46. deepblack

Posts: 50; Member since: Oct 09, 2013

Google uses money to invest their product. Apple does nothing.

49. Pattyface

Posts: 1658; Member since: Aug 20, 2014

Nope Google does all the right things, is never wrong and its products blend

32. InspectorGadget80 unregistered

most expensive parts ever.

63. aksa123

Posts: 368; Member since: Jan 30, 2014

To cover up the multi-billion sapphire glass research.

2. seanwhat

Posts: 321; Member since: Jul 11, 2013

Can't believe they still get away with this. It's sad how many people come under the category of 'blind followers'.

4. fzacek

Posts: 2486; Member since: Jan 26, 2014

Exactly...

19. frustyak

Posts: 248; Member since: Mar 08, 2010

It seems to me that Apple gets singled out for this, yet Samsung, HTC, LG, Ford, General Motors, Volkswagen, etc do the exact same thing. It simple economics. Sellers want to sell their wares for as much as they can. Buyers want to buy the wares for as little as they can. Somewhere in the middle is where the seller is willing to sell for what the buyer is willing to pay, and that's what the item is worth. It doesn't make iPhone owners 'blind followers' anymore than owning a Galaxy S5 makes someone a Samsung 'tool'.

24. Jobayer

Posts: 167; Member since: Feb 22, 2013

I don't blame much on Samsung making so much profit since , it is always pushing the boundaries of tech . Sumsung is also one of the top spenders in R&D . You'r right it's doesn't make anyone fool for choosing Apple or Samsung . And it's good to have completion in the market but it would be more delighting to see them contribute to pulling the boundaries of tech .

62. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Most companies will re-invest a large portion of their profits back into their businesses in the form of R&D, advertising and forming business partnerships. Its important because this create jobs for moms and dads. All I hear from Apple side is they hogging up money in their Apple treasury. By this simple but extensive action could create an unbalances economy.

82. Neo_Huang

Posts: 1067; Member since: Dec 06, 2013

And buying Beats.

26. seanwhat

Posts: 321; Member since: Jul 11, 2013

Yes it does. They're blind followers because they don't consider any of that stuff, they just buy the phone. i know that because if they did consider any of that stuff, they wouldn't buy the phone and we wouldn't be having this discussion because they'd realise how much apple .rip them off compared to other companies.

33. vincelongman

Posts: 5755; Member since: Feb 10, 2013

Exactly, that's an important reason why the Nexus are growing in popularity Much fairer prices and quick updates Though Google still charge $50 for a small upgrade in storage, but can't really complain since the initial price is much lower

47. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Costs get hidden in subsidized pricing from the carriers. It also explains why they sell massively in the US compared to other countries, the US subsidizes just about everything on the four top carriers.

3. fzacek

Posts: 2486; Member since: Jan 26, 2014

What a rip-off. Apple is milking so much money out of consumers by charging $200 for a little more storage. Shameful...

22. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

A little more? A 128GB card from Amazon for a class 10 extreme with tops out at 90MB/s transfer rate with adapter, meaning not phone speed but pc adapter speed, costs 130$ The memory in a phone, goes through more testing, yields are much different, materials used different, and the transfer rates range upwards of 200/MBs blowing sd cards out of the water by more than 2-5 fold in speed. And they charge 200$ wow so evil of them.

44. BlankSpaceNai

Posts: 127; Member since: Apr 23, 2014

Ha ha ha ha. I love when people try to do this.. You have to consider that the format apple uses for their devices are very specific in order to grant you that transfer rate, its a simple way of 'zipping' a file in order to create an easier to transfer file, then unzipping it at its destination instead of each one, one at at time. Thats not worth $200 my friend. Not only that, but the file types used in apple devices are rather different, sometimes larger than the normal. You have to remember that apple doesnt do things the same way as everyone else. Although the numbers LOOK impressive, it doesnt mean that everything is the same under the hood. Does this mean apple is better? FOR apple users Yes, this is fantastic, for everyone else, you have software messing with all your stuff in order to make it 'better' for apples software.

58. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

ha ha ha ha back at ya. You really did try hard, commendable but really, all you had to do was google or bing or yahoo or.... This is even realizable on Android. I don't even have an iPhone to compare it to, so it is not me trying anything, this is REALITY. This was rather easy to find. http://www.jayceooi.com/2013/05/19/galaxy-s4-storage-speed-internal-nand-vs-external-sd-card/ Yes please tell me how awesome 'zipping' files are. Here if you install a game to this memory card (notice this cause it is not noted what speed etc he is using), while it is being read, to load objects, items, etc into ram. You will notice 6x times performance hit in the read section. Think about that. 30seconds to load a level? Nope try 3 minutes instead. Also know what the funniest part about all of this is.... Even the Galaxy S5, the flagship of Samsung doesn't support UHS-I, which is what you need to get the advertised speeds of your memory cards. Which means you wont ever get above 20MB/s write unless it is a peak fluke. This could also be found on xdadevelopers for android bout people unable to get 20MB/s on their S5's.

67. BlankSpaceNai

Posts: 127; Member since: Apr 23, 2014

Then tell me, since your so intelligent. Why do you need such speeds? Your pictures? your 20 second videos to transfer to your pc? Yes, because my transfer rate of my enlarged formatted files that I cant even get a true to life compared to standard sizes, I'll just believe that. So if you have to wait 30 seconds for a level to load or '3 minutes' according to you. The question isnt why its taking so long, but what the hell are you playing that requires that much. See, You can throw anything you like, but the fact remains, unless you can find a standard usage that requires your 'speed' that your trying to sip with your wine, it can be ANY number you can think of, and it wont matter at all. Technology is supposed to assist you in your daily life. What you consider needed for you to make your standard way of living easier. Your screaming about a speed that, for all intents and purposes, arent needed in 95% of society. For hard core media enthusiasts, yes, the transfer rate is extremely important, but they WONT BE USING THEIR PHONE TO DO IT. So if you like, please try again. It will be fun, but I can pretty much bet money that your facts are all based on what others say, not on a business/practical/functional case in which you would use it for a common situation. When you use links to back you up, it seals you in the coffin with people who actually do use their devices. IT shows your ignorance in your facts, because its based through someone elses report, not your own. Its based off someones opinion of how THEY use their devices, not your own. Not just that, it shows you cant take a situation yourself, you need someone to back you up, which shows your inability to justify your case with hard solid situations that actually MATTER. Common, apple people are all about this, you should know better. ^^ But your free to try our home game.

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