Apple Estimated to Spend $234 on Parts in Each iPhone 6s

Iphone6s rose gold

According to estimates from Bank of America Merrill Lynch, Apple will be spending around $234 for the parts used in each 64GB iPhone 6s device it produces. According to BusinessInsider, the estimate notes that the biggest part of that cost is $127 for semiconductor pieces, including $36 for the various cellular radios, $25 for the new 64-bit A9 processor, $22 for various sensors such as Touch ID, NFC and others, and $20 for 64GB of flash memory.

“Other core components like the screen, camera, and battery will add up to $73, and the other stuff (like the case) will add another $33. The older models are cheaper for Apple to make, as the cost of their components has come down over time”.

It must however be kept in mind that even with a starting retail price of $749 for an unlocked 64GB iPhone 6s, Apple won’t be making gross profits of $515 in profit on each phone because there are also manufacturing and distribution costs involved.

In comparison, a teardown report by IHS last year had claimed that an unlocked iPhone 6 costs Apple between $200 and $247 to build, while the iPhone 6 Plus bill of materials starts at $216, and ends at $263 for the 128 GB model.

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  • raslucas

    I can’t help but wonder how long they will be able to get away with this profit margin compared to the competition. I guess when the experience is so positive for the end user, it becomes justified to spend the extra cash. Keep making newer, modern models and dropping last year’s model’s price is a better plan than racing to the bottom