IHS completes initial teardown, estimates iPhone 7 component costs around $220

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Date: Thursday, September 22nd, 2016, 05:20
Category: Hardware, iPhone, News


They’ve run the numbers and after a preliminary teardown, iPhone 7 component costs are estimated to start at $219.80, which is $36.89 higher than iPhone 6s, according to a preliminary teardown of a 32GB model by IHS Markit.

According to the report, the display remains the most expensive component, clocking in at an estimated $43 while the Intel modem and other baseband chips retail for about $33.90.

Apple’s quad-core A10 Fusion chip is the third most expensive item on the bill of materials, costing an estimated $26.90. Meanwhile, the larger 1,920 mAh battery is said to cost just $2.50.

The new rear-facing iSight camera and updated 7-megapixel go for a combined $19.90 while electromechanical components, including the Taptic Engine, antennas, connectors, microphones, and stereo speakers, cost an estimated $16.70 combined.

The iPhone 7’s 2GB of Samsung RAM and 32GB of SK Hynix flash storage for for a combined $16.30. An audio codec and audio amplifier supplied by Cirrus Logic, an NFC controller supplied by NXP, a Bosch Sensortec-made barometer, along with an accelerometer, gyroscope, Touch ID, proximity sensor, and other sensors, cost an estimated $14 altogether.

The accessories within the box, which include a Lightning-to-USB cable, Lightning-to-3.5mm audio adapter, EarPods with a Lightning connector, and 5W USB power adapter, go for an estimated $11.80 combined.

IHS has estimated that Apple’s total cost to manufacture the iPhone 7 jumps to $224.00 after “basic manufacturing costs” related to assembly, insertion and testing. A 32GB iPhone 7 Plus costs $649 as a point of comparison.

Still, before you get too irate about the price, this doesn’t cover other elements such as research and development, software, licensing costs and transportation. The accuracy of the component costs is also questionable. Last year, Apple CEO Tim Cook said he has never seen a cost breakdown that is “anywhere close to being accurate,” adding that they are generally “much different than the reality.”

The iPhone 7 estimated development cost is more expensive than previous models while the iPhone SE’s costs remains around $160.

Stay tuned for additional details as they become available.

Via MacRumors and IHS

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