How Much Does It Cost To Make An iPhone 7 - Amazingly Only $200

The components of an iPhone 7 apparently adds up to total cost of $224.80, absolutely less than the cost of a new phone - according to a teardown company.

IHS Markit report indicates that with the controversial lightning jack, the iPhone 7 is noted to be the most expensive iPhone produced by Apple so far.

iPhone 7 is available in the market at $694. However, it only costs $224.80 to produce, as estimated by IHS.

iPhone 7 obviously has an Intel mobile cellular platform and obviously a higher base storage compared to its previous generations. iPhone 7 now starts at 32GB. Some of its cost increase may be because of this change. Now, iPhone 7 sets its premium model at 256 GB.

The components of an iPhone 7 with 32GB memory is estimated to be at $219.80, according to IHS Markit. The most expensive piece within the handset, according to teardown experts, is at $43.

The "basic manufacturing costs" is worth $5 for assembling and testing. Adding this, to the component costs, a 32GB iPhone 7 will cost 224.90, as estimated by IHS Markit.

The estimates for the production of iPhone 6, 5s and 5 is at $200. The components for Apple's 4-inch device, the iPhone SE, is worth $160.

The most expensive part of the iPhone 7 is the display at $43. It is followed by the Intel Modem including other chips at $33.90. The new A10 Fusion chip costs $26.90. The two cameras cost $19.90. The 1,9230 mAh battery apparently costs $2.50 and the debated Lightning EarPods and charger both cost $11.80.

iPhone 7 costs at £599 in the UK, which is £60 more than the iPhone 6s. iPhone 7 apparently only costs $36.89 more to make than iPhone 6 because of its upgrade camera, chips, and battery.

In the US, iPhone 7 costs $649, the same as its previous iPhone 6s.

Teardown estimates mentioned do not of course include the money and time allotted on research, transport of software, and many others.

"Generally, there are cost breakdowns around our products that are much different than the reality. I've never seen one that is anywhere close to being accurate," according to Tim Cook last year.

"Despite significant cost erosion in NAND flash over the last year, this increase in the overall memory cost definitely puts pressure on the bill of materials costs -- and therefore margins -- from Apple's perspective," Andrew Rasswiler said, Senior Director of Cost at IHS Markit.

"All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past," added Rasswiler.

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