iPhone 7 manufacturing costs estimated in new report

Image: Reuters

Apple’s costs for its new iPhone 7 are “more in line” with its competitor Samsung, though still enjoys better margins, according to a teardown analysis by IHS Markit released this week.

Total material costs for the IPhone 7 – released on September 7 – with 32 gigabytes of flash memory are $US 219.80, with $US 5 in basic manufacturing costs (assembly, insertion and testing) added. The phone’s unsubsidised price is $US 649, $US 36.89 more than for IHS’s estimate of the iPhone 6S.

“All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past,” said IHS Markit’s Andrew Rassweiler.

To read the analysis of the new phone’s manufacturing costs, click here.

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