Apple has did it again with its newest iPhones, as the company has managed to break its own record and sold as much as 13 million units in the launch weekend alone. Apple is a well-known champion in profit margins, so it’s always curious to see how much does the company spend on building its products.
A fresh report coming from research firm IHS Technology claims that Apple’s latest iPhone 6s and 6s Plus hardware material costs are $211.50 and $236, respectively. As you are aware, the entry-level versions of the iPhone 6 start at $649 and $749, at least in theory, this leaves Apple with around $400 to $500 per unit.
Of course, this isn’t exactly an honest estimate, as it doesn’t take into account many other expenses. And it seems that this has pissed of Apple CEO Tim Cook himself, as criticized third-party firms who provide such estimates back in this spring, saying they are usually far off base.
According to the firm’s findings, it seems that the new 3D Touch display is the most expensive single component for the iPhone 6s Plus, being priced at around $52. The A9 processor is said to cost Apple $22 per unit, with the 2GB DRAM module priced at $17, the Qualcomm baseband chip for $13 and front and rear camera modules at $22.50.
The 16GB NAND flash chip is estimated to cost $5.50, while iPhone’s WLAN module and battery pack come in at $6 and $4.50, respectively. Apple is said to have paid around $18 for the total cost of the onboard audio hardware, NFC controller, accelerometer/gyroscope, barometer and compass. Other components such as the enclosures, circuit boards and connectors account for $42, and assembly fees come are set $4.50 per device.
After Tim Cook publicly slammed these estimates, Senior Research Director Andrew Rassweiler from IHS said that they didn’t include expenses related to research and development, logistics, marketing and other costs. Even so, I think we all agree that Apple is most definitely still making a nice buck after each sale.