The recently launched iPhone 7 was manufactured for $224.80, according a latest report from research firm IHS.
The total cost to build a 32GB iPhone 7 is $219.80 plus a $5 basic manufacturing cost which sums up to $224.80, said IHS. This is $36.89 higher than IHS’s estimates for the iPhone 6S due to newer components and technologies like the Taptic Engine, better camera and storage increases. Apple sells the base model of iPhone 7 at $649, this gives Apple an expected profit of $424 for each device sold.
Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit said,
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. All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.