Apple iPhone 7 costs only $220 to manufacture

Thomas Wellburn
September 22, 2016

A new teardown report by a UK analytics company has revealed that the Apple iPhone 7 costs just £173.16 GBP to manufacture.

Most people are not very savvy when it comes to business and money, so it tends to be a revelation when they realise just how much money these big tech companies make on their products.

During an iPhone 7 teardown report by London analytics company IHS Markit, they discovered that the bill of materials (BOM) for the new Apple device were much closer to Samsung this time around, suggesting that their handsets could literally be better quality than Apple.

“Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple’s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.

Apple iPhone 7 more expensive than 6s… but not by much

IHS Markit also discovered that the handset actually cost more to manufacture than last years device, exceeding the iPhone 6s production costs by $36.89. This years Apple iPhone 7 amounted to $224.80 (£173.16).

They also discovered that the elusive faux speaker grille added to the left side has an actual use. Apple reportedly included it to aid the internal microphone, which was quieter after the inclusion of waterproofing.

The Samsung Galaxy S7 edge is due to undergo the same teardown examination on September 29th, so we’ll be keeping a close eye on the results to see how much these handsets differ in manufacturing costs.

For more news, visit what Mobile’s dedicated news page.


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