Don't Panic, Everyone, Apple Still Makes a Tasty Profit on the iPhone 7

By Gary Cutlack on at

People poking about with all the types of really small special screwdriver have taken apart the iPhone 7, then used component pricing recources to guesstimate how much it costs Apple to make each one.

The answer? Around $219.80 or £168 per phone for the entry level device, according to analyst IHS Markit. Markit's Andrew Rassweiler said: "Total BOM [bill of manufacture] 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."

They say the component cost for the iPhone 7 is  $36.89 (£29) higher than the cost of having an iPhone 6s built, although there's still quite an incentive for Apple to do so, seeing as it pockets a good £400 or thereabout from the sale of each phone.

The estimated figures show that Apple's still the king of making money from hardware, with Rassweiler adding: "All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past." [IHS via Mac Rumors]


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