Sep 25, 2016

Each iPhone model is more expensive to build than the last

IHS has published its preliminary bill of materials analysis for Apple‘s iPhone 7, reporting that the base 32 GB version of the device costs about $225 to manufacture.  The new phone is estimated to be $36.89 more expensive to build compared to last year’s iPhone 6S. Apple has clearly been packing more advanced components into its flagship smartphones each year. With the scope for functionality-based innovation slowing down, Apple has had to focus on more niche and potentially expensive technologies (3D-Touch, Taptic engines, dual cameras) in order to differentiate itself from rivals.