iPhone SE costs Apple just $160 to build: IHS

Apple iPhone SE_fonearena-05

IHS teardown has revealed the manufacturing cost of Apple’s latest iPhone SE. According to the research firm, the iPhone SE costs Apple only about $160 to build and assemble.

IHS conducted a teardown analysis for the 16GB version of the iPhone SE and said that its components cost a total of $156.20 which rounds up to $160 with the manufacturing cost. The Gorilla Glass display in the iPhone SE is estimated to be one of the most expensive components, price at $20. This display was around $41 back in 2013 for the iPhone 5s.

The iPhone 5s display was made by Sharp or JDI, but Apple has gone with LG display for the iPhone SE. IHS estimates Apple pays $22 for the iPhone SE’s A9 processor and $15 for Qualcomm’s new cellular chip. The lithium-ion battery in the iPhone SE costs just $2.15, according to IHS.

iPhone SE IHS teardown

Analyst at the research firm,  Andrew Rassweiler, senior director of cost benchmarking services at IHS, said.

The iPhone SE represents an amalgamation of three iPhone generations — iPhone 5s, iPhone 6 and iPhone 6s — rolled into something altogether new. The size and resolution of the display are the same between the iPhone SE and iPhone 5, though the mechanical components such as the enclosure have been slightly modified.

Wayne Lam, principal analyst, mobile devices and networks, IHS Technology said,

Apple is willing to drop its gross margin on the low end to induce sales — though it is likely counting on many consumers upgrading to the more profitable 64 gigabyte SE model. When the profit machine that is Apple capitulates to the market forces of a maturing industry, it shows its tacit acknowledgement that even it is not immune to the dynamics of the global smartphone slowdown.

The total costs on the iPhone SE is the lowest on any new model in years. The iPhone 5s parts and assembly cost about $191, while the iPhone 5 cost $168 and the iPhone 6s Plus components costs up to $236. Meanwhile, Samsung Galaxy S7’s manufacturing cost was revealed at $255 by IHS. It must be noted that the cost IHS has calculated is only for the components and raw material and does not include the R&D, labour cost, marketing expenses and supply-related costs.

The retail price of the iPhone SE 16GB model is $399 in the US. It will go on sale in India on April 8th at a starting price to Rs. 39,000.


Author: Sneha Bokil

Sneha Bokil is a tech enthusiast and is currently using OnePlus 3T but she still treasures her Nokia N70 (M). You can follow her on Twitter @snehabokil and on Google+