It Costs Apple an Estimated $295.44 to Make an iPhone 8 Plus [Report]

It Costs Apple an Estimated $295.44 to Make an iPhone 8 Plus [Report]

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It costs Apple an estimated $295.44 to make an iPhone 8 Plus, according to a preliminary estimate from IHS Markit.

The new 64GB Apple iPhone 8 Plus is said to carry a bill of materials (BOM) cost that comes out to US$288.08, higher than any previous iPhone. Additionally, it's estimated that Apple spends $7.36 in basic manufacturing costs per device.

The smaller iPhone 8 has a BOM of $247.51, or $9.57 higher than the Phone 7 at the time of release.

To compensate for the higher costs, Apple has increased the price of the 4.7-inch iPhone 8 by $50 and the 5.5-inch iPhone 8 Plus by $30.

“The higher total BOM cost for the iPhone 8 Plus can’t be tied to a single area or feature. The higher cost is the result of slower annual component cost erosion tied in with additional features,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “From a teardown perspective, the biggest cost adders would be the increased NAND flash memory content and new wireless charging components.”

“From our BOM analysis, we can see that Apple invested heavily in the camera capabilities of the iPhone 8 Plus due to the increase in component costs,” said Wayne Lam, principal analyst, mobile devices and networks for IHS Markit. “Based on these investments, we expect improvements not only in the optics in the dual camera module, but also in computationally intensive requirements of the portrait lighting capture feature that rely on the graphical horsepower and neural engine (AI) of the A11 Bionic chip.”

Check out the chart below for a full breakdown...


It Costs Apple an Estimated $295.44 to Make an iPhone 8 Plus [Report]
KingKoopa - September 26, 2017 at 3:34pm
The reason it costs “only” $300 for them to make is because they order enough parts to make millions of them. For example, if they plan to make 10 million iPhones @ $300 per phone (which would be a disaster, iPhone 7 sold 78 mil) they'd spend 3 BILLION before a single phone is bought. If you or I wanted to build one iphone ourselves, we’d spend way more than $300 in parts. I swear people are so stupid sometimes.
Justabrake - September 26, 2017 at 11:37am
The way I see this is that Apple has everything in place from the first iPhone and even though it gets better the iPhone but price shouldn’t keep going up it should be going down instead
Matt - September 26, 2017 at 9:14am
It is the same story with cars
Fjk - September 26, 2017 at 5:02am
The thing is that if you brake the 52$ apple will replace it for 150$ however if you brake the 5$ back glass it will cost you 400$ to replace it at apple :) cheers apple $)
1
Bill Gates - September 26, 2017 at 4:33am
What people don't see is that for all them parts there was a cost on designing them, engineers, stuff like that. Yes they do probably make more than half the cost on revenue even with all the post production expenses but it's not 295.
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