The cost of manufacturing iPhone 7 is only $ 225

Every new iPhone produced by Apple has the interest of research and analysis companies to know its costs and thus estimate the profit margin. We also know that Apple is the largest company to make profits from the sale of smart phones, although it is the second largest seller, what about the iPhone 7?

According to a study conducted by IHS Markit, the cost of internal materials in the manufacture of the phone is $ 219.80 and add $ 5 for assembly costs, thus the total cost is $ 224.80.

This is for a 32-gigabyte version of the iPhone. Of course, the cost increases slightly with increased storage capacity, but compared to the iPhone 6S, it’s costing more than $ 36.89.

So it costs iPhone 7 as a manufacturing material about $ 225 and sells for $ 649 giving the company a profit margin of about 189% or $ 424 per phone.

Of course, this comparison is not fair and accurate because it does not take into account the costs of marketing, R & D, branding, etc. that allow Apple to impose exorbitant prices on its users and also make people buy its machines.

Logically, it will cost iPhone 8 more, despite the use of OLED screens, which are relatively cheaper than the LCD screens, but the rest of the new and advanced features in the phone will raise the cost, and this will lead Apple to raise its price, where it is believed to the price of one version of it to a thousand dollars.

 

 

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