The $400 iPhone SE costs Apple just $160 to build, according to IHS teardown
posted by Ben R. / Apr 04, 2016, 9:58 AM
iPhone 5s, you can readily recycle your old cases (and many peripherals) for use with the new iPhone SE. Most of the key changes are to be found under the hood, and thanks to a recent Chipworks teardown, we got a good look at the innards of Apple's latest export. Now, IHS has decided to get in on the act, and along with revealing the guts of the new iPhone SE, has estimated that it costs Apple a mere $160 to build the new handset.
iPhone 6s, and to those unperturbed by more sizable devices, is easily among the best in its field. There's no question that Apple has done well to consolidate such power and features into a more affordable parcel than its flagship. Judging by IHS' guesswork, however, the already cash-rich firm is still turning a very handsome markup.One of the key selling points of the iPhone SE, beside the 4-inch display for those who don't subscribe to the trend of larger screens, is the fact that you get all of Cupertino's high-end hardware at a modest-for-Apple $399 starting price. The iPhone SE is essentially an iPhone 5s kitted out like an
The $399 16 GB iPhone SE model costs around $160 to make including components and manufacturing according to IHS, whose findings once again demonstrate just how greatly Apple's margins increase per storage increment. Many commentators and consumers have pleaded with Apple to offer expandable storage by means of a microSD slot over the years. Unsurprisingly, this has fallen on deaf ears, since the fruit company tends to charge an extra $100 at every wrung of the storage ladder. Case in point, those seeking more real estate with the iPhone SE will have to pony up $100 more, or $499, for the 64 GB variant. To Apple, however, the 64-gig edition apparently costs $170 to manufacture, which is a mere ten-buck increase on its side.
The general reception to the iPhone SE has been one of positivity. The past few years has seen smartphone display diameters rise sharply in a shift that has also forged a market for phablets. As such, most existing ~4-inch smartphones are under-powered, or at least not up to what the majority would consider as high-end.
If the iPhone SE does sell strongly, you can bet that it will have plenty of similarly spec'd company in the not-too-distant future. Having said that, the early signs are not looking too promising.
Posts: 91; Member since: Feb 02, 2016
Wow! if they wanted to make a large profit and also help shops with some profit they could have easily priced the phone at $300, they could take $70 and the shop could take $70 and Apple can still pay the suppliers $160 for the parts and manufacturing- These greedy people.
posted on Apr 04, 2016, 10:04 AM 4
Posts: 4063; Member since: Jul 23, 2013
But it's 160 new with all components being built from zero. This is not the case, as Apple showed with their recycling robot. Half those components come from traded in iPhone 5 and 5s phones from 3 years ago. Some of the most expensive stuff like screens and chassis are reused and so likely, this phone costs Apple maybe 100 or so at best.
posted on Apr 04, 2016, 2:23 PM 0
Posts: 2694; Member since: Nov 09, 2015
Everyone makes money with Apple (TM)...!!! Okay, seriously now... Since iOS isn't open source, I think Apple charges extra for iOS Software 'ownership' (Not sure what word would be appropriate, LOLz!) ... Just like Windows for Desktop...! BTW, if that's really the case, then its ridiculous...
posted on Apr 04, 2016, 10:05 AM 0
Posts: 14967; Member since: Sep 25, 2013
Windows cost $99 and does way more than any desktop OS in the world, whether that OS is free or cost money. The fact should be thins, the larger the potential sales market, the lower the price could be. The problem is, sales on phones are only high for a single quarter. In order for Apple to maximize costs, they have to consider the downtime for the 3 quarters where sales will sharply fall. As we saw with the iPhone 2015, initial sales were over 70M+, then the last quarter they fell to 50M, which means in Q3 they will fall by at least another 25M and then trickle off more and more as the new phone is closer to release. Then there is a small pickup in sales when a new model forces a price drop on older models. The ohone in fair, is only worth 50% more than it costs to make. So if Apple sold it ay 299-$350, that would have been a fair price. Especially since I can get a brand new phone with all new parts and not reused ones for $400, that is larger and just as fast as the 5SE.
posted on Apr 04, 2016, 11:17 AM 1
Posts: 7; Member since: Apr 04, 2016
This thing costs around 580$ in my country
posted on Apr 04, 2016, 10:35 AM 0
Posts: 283; Member since: Feb 11, 2016
That's where Apple saves so much money by changing as little as possible each year and use marketing to seem like there's major changes. If Samsung could get away with so few changes and massively reduced R&D they would be a lot more profitable.
posted on Apr 04, 2016, 10:59 AM 0
If Samsung had to build their own OS and ecosystem and then maintain it throughout the world and not smooch off already built platform and ecosystem - they would be a lot less profitable. But there's only one company that does that - it's Apple everyone else keeps falling on their face trying to do what Apple did.
posted on Apr 05, 2016, 2:06 PM 0
Posts: 3944; Member since: Oct 03, 2015
Well that's a better deal than the 6s and 6s plus, they cost $200-$216 to make and cost $649-$749 to buy. Apple profits way less of the SE, only $240 compared to the $449 and $533 they get from 6s/6s plus sells.
posted on Apr 04, 2016, 11:08 AM 0
Posts: 14967; Member since: Sep 25, 2013
Well this shows just how overprice $649 is for the 6S. After all, I am sure the components and slightly larger case at .7" is an extra $250. Wow, Apple's markup is huge. Maybe if there was only one Android OEM, they could markup the cost like that too and make a serious killing.
posted on Apr 04, 2016, 11:11 AM 0
Posts: 2694; Member since: Nov 09, 2015
@TechieXP1969 Nokia used to charge the same "markup" on its Symbian Phones notable The flagship N Series... Not to such extent as Apple, but the premium on N Series was still fairly steep... I wanted to buy an N97 once, and the price made me wanna cry!!! $700 Aussie Bucks, Woah!!! But now it looks pretty cheap in front of iPhone 6S Plus!!! I mean, it was The 6S Plus of its time right Will you ever forgive me, Nokia?
posted on Apr 04, 2016, 11:20 AM 0
Posts: 434; Member since: Nov 15, 2011
Only the blindest human being will buy this piece of junk
posted on Apr 04, 2016, 11:42 AM 1
Posts: 209; Member since: Jun 27, 2015
That's only the components and manufacturing cost. What about marketing, R&D, customer service, maintenance, etc? Same thing goes for Samsung (S7 costs $255, priced $670). This isn't like selling drinks by the street.
posted on Apr 04, 2016, 11:50 AM 0
Posts: 3960; Member since: Oct 21, 2014
Talking about costs of parts, here's some insight if anyone's thinking Samsung is just-as much of a ripoff. First off, you get a $100 Gear VR free with the S7: http://www.phonearena.com/news
Next, you get a $30 gift for activating and using Samsung Pay:
Add that to the cost of Galaxy S7 components:
In conjunction with the over $500 worth of Galaxy Gifts you get from Samsung:
And paying the premium price for the Galaxy S7 is easily justifiable. Whereas you'll be waiting for at least 500 weeks to gain the equivalent of that from apple's weekly 99c giveaways. It's no surprise apple makes the most profit, they blatantly sell you inferior device at a premium...
posted on Apr 04, 2016, 7:22 PM 0
Posts: 379; Member since: Aug 26, 2015
How many Apple users have posted a comment? Maybe 2-3 out of 50? Looks like half are Android users who wish they could afford to buy an Apple product and the rest are hating anything and everything Apple. Even if Apple sold it for $200 the haters would be hating.
posted on Apr 04, 2016, 11:24 PM 0
Posts: 1182; Member since: Dec 24, 2011
Even as an iPhone user, I find your comment stupid. Why would you think they can't afford an iPhone? But I do understand it could be where you live, maybe no subsidized iPhones? Or maybe you are in a third world country would people mostly use cheap Chinese phones? Anyway, you should not think android users don't like iPhone just cause it's expensive (it's actually on the same price range as all android flagships), it's just planely they don't like it. Nothing less nothing more.
posted on Apr 06, 2016, 1:56 PM 1
Send a warning to post author
Send a warning to Selected user.
The user has 0 warnings currently.
Next warning will result in ban!
Ban user and delete all posts
Message to PhoneArena moderator (optional):