Image credit – IHS Markit
Apple’s iPhones are usually sold at premium prices, and in many instances, they cost more than most high-end flagship Android phones as well. That being said, we’re sure many are also wondering how much do the phones cost to make, and exactly by how much is Apple marking them up by?
According to a preliminary teardown of the iPhone 7 32GB model by IHS Markit (via MacRumors), they have estimated that the components in the phone costs Apple around $220. This is for the base model, meaning that this is the cheapest iPhone 7 Apple has to offer, so we can only imagine that the higher-end options will cost even more.
The most expensive component is said to be its display which apparently costs $43, followed by the Intel modem and other baseband chips which costs $33.90, and coming in third would be the A10 Fusion chipset which is said to be priced at $26.90. We should point out that these prices might not be 100% accurate as it is possible that Apple could have gotten discounts for bulk orders.
Also note that $220 isn’t how much it costs Apple to make the iPhone, but rather its components itself since other factors such as R&D, marketing, design, and so on are also factored into the final price. That being said, Apple’s CEO Tim Cook has stated in the past that he has yet to see a teardown cost estimate that is even close to accurate, so that’s worth keeping in mind too so maybe don’t treat these numbers as gospel.