Apple announced their new phones this month and the prices are as expected - the iPhone 7 starts at $649 and iPhone 7 Plus at $769. But, do you know how much Apple has to spend to manufacture those phones?
A report from IHS Markit, an analyst company based in London, shows that Apple's total cost to manufacture the iPhone 7 (32GB) is $224.80, which is around 18% more than the cost of the iPhone 6S.
"Total BOM (the bill of materials) 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", said Andrew Rassweiler, senior director of cost benchmarking services.