Teardown reveals iPhone 6 costs at least $250 to make

Teardown reveals iPhone 6 costs at least $250 to make
The battery is removed.

A teardown of the latest iPhones by Apple conducted by research firm IHS has revealed that the newest iPhones both cost upwards of US$200 (S$254) to build.

Specifically, the report stated that the iPhone 6 costs around US$200 to US$247 (S$254 to S$314) in parts and labour to build, whereas the larger iPhone 6 Plus costs US$216 to US$263.

The variation in price is due to memory capacity, which is sourced from numerous companies including Micron and SK Hynix.

The report also estimated that Apple is paying around 42 cents per gigabyte.

The most costly component for both phones is the display. The iPhone 6's display is said to cost US$45, whereas the iPhone 6 Plus' display is more expensive at US$52.50. On the other hand, labour associated with the cost of assembly is estimated to be just US$4 to US$4.50.

Profit margins on both phones have been kept at around 70 per cent, which is the same for the iPhone 5 and iPhone 5S.

Source: Re/code


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