Apple iPhone prices are always a point of discussion. Blame it on the handsets' aesthetics or the amazing features that they offer, the price of an iPhone is always a big deal.
According to a report by HIS Markit Ltd, Apple Inc is spending more to manufacture iPhone 7 than it did for the iPhone 6S.
The components within a 32GB iPhone 7 are estimated to be worth $219.80, teardown experts IHS Markit have said, with the most expensive piece within the handset being the screen at $43.
The IHS Markit report says that once the $5 "basic manufacturing costs" of assembling and testing are taken into account, the total cost for Apple to produce the 32GB iPhone 7 is $224.80.
The total cost to produce an iPhone has increased to $224.80 (approx Rs 15,000), $36.89 higher than the iPhone 6S. However, the selling price of the phone is Rs 60,000, making it nearly four times higher.
In the US, the phone retails at $649, the same price as its predecessor.
"Phone 7's Bill Of Materials (BOM), a financial estimate of the raw materials used, was "in line" with flagship smartphones made by rival Samsung Electronics but Apple ekes out better margins," said Andrew Rassweiler, senior director of cost benchmarking services at IHS Markit.
The report further states that in spite of acquiring all the raw materials at the same cost as Samsung, it fetches better margins than the rival smartphone maker.
The teardown price does not take into consideration the time and money spent on research, software, and transport.