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Apple charge consumers three times the price of iPhone7 build

Apple charge consumers three times the price of iPhone7 build
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The bill of materials (BOM) for an iPhone 7 equipped with 32GB of NAND flash memory costs $219.80, according to a preliminary estimate from IHS Markit (Nasdaq: INFO), a specialist critical information, analytics and solutions.

After $5 in basic manufacturing costs are added, Apple’s total cost to manufacture the iPhone 7 rises to $224.80. The unsubsidised price for a 32GB iPhone 7 is $649. IHS Markit has not yet performed a teardown analysis on the larger iPhone 7 Plus. This preliminary estimated total is $36.89 higher than the final analysis of the iPhone 6S published by IHS in December 2015.

“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses,” said Andrew Rassweiler, senior director of cost benchmarking services for HIS Market. “All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”