At $225, Apple iPhone 7 costs more to manufacture than iPhone 6s: IHS Markit

According to teardown report published by IHS Markit, the cost that goes into making an iPhone 7 is more compared to last year’s iPhone 6S.

The report suggests that Apple’s manufacturing costs may have increased with the iPhone 7 as it features a bigger battery, more inbuilt storage, and the new advanced A10 Fusion processor. The total cost the company incurs manufacturing an iPhone 7 has risen to $224.80, which is $36.89 higher than the iPhone 6S based on the IHS Markit’s findings.

The business research provider also revealed the iPhone 7’s Bill of Materials – a financial estimate of the raw materials used, was at par with flagship smartphones from competitors including Samsung. However, IHS Markit said that Apple somehow churns out better profit margins.

“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,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.

The report also points out that iPhone 7’s display has a wider color gamut, as it includes DCI-P3 as well as traditional sRGB, which offers improved rendering of photos and videos. Besides, the report also adds that iPhone 7’s haptic engine has also been improved for a better click feel for users.

The company unveiled the new iPhone 7 and iPhone 7 Plus with high-resolution cameras and no headphone jack at its annual launch event held on September 7, and the iPhone 7 Plus’ jet black version is already sold out in the US.

iPhone 7 and 7 Plus Price in India

Both devices will go on sale in India starting October 7. The iPhone 7 starts at Rs. 60,000 for the base 32GB model, and goes up to Rs. 70,000 for 128GB. While its 256GB model is priced at Rs. 80,000. On the other hand, the larger iPhone 7 Plus starts at Rs. 72,000 for the 32GB version, Rs. 82,000 for the 128GB version, while its top-end 256GB variant is priced at Rs. 92,000.

In addition, Apple has also announced price drops for the 128GB versions of the iPhone 6s and iPhone 6s Plus in India, along with the 64GB version of the iPhone SE.