Gosh! The iPhone 7 is much more expensive than earlier ones were. However, why is that so? They all look pretty much the same.
Besides, this iPhone doesn’t have the headphone jack, then why does the manufacturer say that it more expensive.
Here’s what we know…
The total cost of the materials used for making the iPhone 7 components sum up to $219.80. The statement by IHS Markit confirmed this fact. The company also gave an estimated cost of $5 for the process of manufacturing the iPhone, based on preliminary findings.
Therefore, the price $225 seems logical but proves relatively too expensive for customers. In fact, IHS noted a statement last December, which stated that Apple’s iPhone 6 costs $36.89 less. This means that the cost of production is about $187.91 per unit, according to IHS.
Here’s what the IHS Markit’s senior director of cost benchmarking services said:
“Total bill of material 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. All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.”
Apple Would Cash In on iPhone 7
Well, don’t feel too bad about the cost of the iPhone because IHS evaluated it to be worth $649, with the company’s profit margin. IHS is going to evaluate other iPhone 7 versions to see how much Apple is making from each sale.
Smarter Design They Say
Well, the design of the iPhone is similar to its predecessor (iPhone 6). Its camera is the same too. However, it seems as if the Home button is new, and they have eliminated headphone jack. The display seems brighter and the color accuracy is much better than the earlier model had.
10 New Features in iPhone 7
New Updates, New Challenges
Apple says that each new update they produce comes with new challenges. Moreover, Apple says that as the cost of assembly and components comes down, they make increased profits.
If Apple is indeed making as much as the IHS estimates we can only be sure after evaluating the components of the iPhone in more detail. The tricky part is that Apple has never disclosed how much it actually costs the company to produce each unit.
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