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Apple’s iPhone 6s Plus production cost is $236 but sells at $749

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Apple’s iPhone 6s Plus production cost is $236 but sells at $749
NEW YORK (Web Desk) -The iPhone 6s Plus comes with a range of exciting hardware modules upgrade: the A9 SoC, 3D Touch display, better camera sensors, variant of Gorilla Glass 4 display protection layer, new Taptic engine, and a spacecraft-grade series 7000 aluminium body.

So how much do these components and other parts of the new iPhone cost? One third of what Apple is charging you, reportedly.

The company only spends about $236 (roughly Rs. 15,000) to make and assemble the iPhone 6s Plus, as per a teardown analysis by IHS Technology.

This should displease a few users as the off-contract starting price of the iPhone 6s Plus is $749 (Indian pricing could be around Rs. 72,000), which is apparently more than three times what Apple spends on making the phone.

Do note these figures are just a rough estimation and doesn’t factor in other expenses – shipping, warehousing, marketing, research and development – Apple and other companies make to sell these smartphones, as IHS Senior Research Director Andrew Rassweiler noted when describing the limitations of the teardown analysis.

IHS Technology noted that the new display – 3D Touch – costs around $52.50 (roughly Rs. 3,500), while the A9 SoC paired with M9 coprocessor costs $22 (roughly Rs. 1,500).

The memory costs $17 (roughly Rs. 1200), whereas the 16GB storage costs $5.50 (roughly Rs. 360).

The research noted that the camera sensor costs $22.50 (roughly Rs 1,500), while other mechanical and electro-mechanical summed up to $42 (roughly Rs. 2,800).

“The 3D touch system is novel, and when combined with Apple’s Taptic Engine, these features add about $10 to the total bill of materials cost,” Andrew Rassweiler, senior director of cost benchmarking services for IHS Technology said.

“Haptic systems are fairly low-tech and forms of haptic feedback like this have been implemented for years in other devices using traditional vibration motors, but the iPhone’s implementation of this feature is unique.”

If prices are accurate, Apple has spent only $16 (roughly Rs. 1,100) more than it spent on the manufacturing and assembling of the iPhone 6 Plus.

The firm also said that the iPhone 6s would cost around $211.50 (roughly Rs. 14,000) to make, though it noted that it hasn’t actually opened the device and the figure is just a calculated estimation.

To put the price in perspective, the Samsung Galaxy S6 Edge costs $290.45 (roughly Rs. 19,000) to manufacture and assemble, according to IHS Technology, and was priced at $700 at launch.
Apple’s iPhone 6s Plus production cost is $236 but sells at $749 - Daily Pakistan Global
 
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Well include taxes, transport and retail outlets profit margins as well. Its not just the production cost they have to bear. List goes on like Research cost, buying patents etc. They do make profits but with all expenses i doubt that they make more than $200 as there is lot of competition in the market right now to sell their products.
 
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previous models
Apple's iPhone 6 Teardown And Other Costs Analysis

Apple-ALL-iPhones-teardown-cost-chart.png
 
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Apple has the full potential to be the blackberry of the future
 
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Well include taxes, transport and retail outlets profit margins as well. Its not just the production cost they have to bear. List goes on like Research cost, buying patents etc. They do make profits but with all expenses i doubt that they make more than $200 as there is lot of competition in the market right now to sell their products.
Do you know what $200 profit on a $242 cellphone means? It means no other business makes this percentage of prophet. That is 90% profit.
 
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Apple has the full potential to be the blackberry of the future

That could be true for the iPhone. Certainly some things get hot and people will pay a premium for it...but after a while it will be hard to keep that premium. Take for instance iPods. Not sure what the market is now but I'm sure it is far less than it used to be. They have to continually move on. Make premium phones and tablets. These will cool off too. Move into watches and cars. Trying to stay ahead in the premium market.

Do you know what $200 profit on a $242 cellphone means? It means no other business makes this percentage of prophet. That is 90% profit.

Perfect storm: How Apple vacuumed up all of the profit in the smartphone business | VentureBeat | Mobile | by Mark Sullivan
"it’s safe to say margins were somewhere in the neighborhood of 40 percent."
"Samsung, Apple’s chief rival in mobile...but it’s profit margins were far less that Apple’s, falling to 18 percent"

Yep, they are going for big margin products.
 
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That could be true for the iPhone. Certainly some things get hot and people will pay a premium for it...but after a while it will be hard to keep that premium. Take for instance iPods. Not sure what the market is now but I'm sure it is far less than it used to be. They have to continually move on. Make premium phones and tablets. These will cool off too. Move into watches and cars. Trying to stay ahead in the premium market.



Perfect storm: How Apple vacuumed up all of the profit in the smartphone business | VentureBeat | Mobile | by Mark Sullivan
"it’s safe to say margins were somewhere in the neighborhood of 40 percent."
"Samsung, Apple’s chief rival in mobile...but it’s profit margins were far less that Apple’s, falling to 18 percent"

Yep, they are going for big margin products.
Also there is nothing in the iPhone which you can't find in its cheaper droid competitor well except for certain apps but most folks don't buy phones for apps

That could be true for the iPhone. Certainly some things get hot and people will pay a premium for it...but after a while it will be hard to keep that premium. Take for instance iPods. Not sure what the market is now but I'm sure it is far less than it used to be. They have to continually move on. Make premium phones and tablets. These will cool off too. Move into watches and cars. Trying to stay ahead in the premium market.



Perfect storm: How Apple vacuumed up all of the profit in the smartphone business | VentureBeat | Mobile | by Mark Sullivan
"it’s safe to say margins were somewhere in the neighborhood of 40 percent."
"Samsung, Apple’s chief rival in mobile...but it’s profit margins were far less that Apple’s, falling to 18 percent"

Yep, they are going for big margin products.
Also there is nothing in the iPhone which you can't find in its cheaper droid competitor well except for certain apps but most folks don't buy phones for apps
 
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Iphone made in China. Its good Chinese buy a lot of iphone :D
 
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iPhone is mainly popular due to it's user friendly interface. How can you ignore the ''software'' iPhone works on? Having Apple stores worldwide, paying thousands of employees, R&D, transportation charges. No one purchases the iPhone for their hardware. If they wanted Octa Core Processors, with 4 GB RAM, they'd go for Android, Sony/Samsung or something else. iPhone is known/sold for it's software and that's what they charge for. Their software is priceless.
 
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Marketing takes a huge chunk out of profit.

Every iPhone we see in any movie is not there by chance or just because someone likes it. Everytime we see someone calling someone on an iPhone is not accidental either. The director is not wasting screentime for free.

Ever saw Breaking Bad? Ever wonder why there are so many Samsung phones and laptops?

Despite the costs, iPhones enjoy the highest profit-margins of any smartphone in the world. By forcing strict quality policies and unethical competition between suppliers, Apple is able to minimize costs to unbelievable levels.
 
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money no problemo :dance3: i will get 1 for meeeeeeeeeeeeeeee:raise: with golden Telenor number:yay:
 
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Do you know what $200 profit on a $242 cellphone means? It means no other business makes this percentage of prophet. That is 90% profit.

Apple spent round 6.5billion USD on R&D. Then other SG&A was 11 billion USD.

i didn't even start pulling in their asset depreciation. So please ask someone for a clarification before you make childish comment
 
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