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.