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Apple iPhone 7 Costs $225 to Manufacture, while Retailing at $695 in the US

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Apple launched the iPhone 7 and iPhone 7 Plus smartphones at the Special Launch Event held on September 7th in San Francisco. Both the devices came with decent upgrades compared to the last year’s iPhone 6S and 6S Plus. Unlike the earlier launches, 2016 iPhones came with different cameras on the rear. While the iPhone 7 Plus came with dual 12MP rear cameras, the iPhone 7 is limited to just one 12MP sensor.

Though there are certain upgrades, the company priced both the iPhone 7 and iPhone 7 Plus same as their predecessors. Now we got the estimated bill of material (BOM) details of the iPhone 7 32GB storage variant from IHS. The same device is selling for $649 in the U.S which is usually cheaper than the Indian pricing which is said to be launched at Rs. 60,000 ($895). This time, there are no official first-week sale numbers but few reports suggest the sales of the new iPhone 7 to be on par with the iPhone 6S sales.

Adding the $5 manufacturing cost per handset, the device is said to cost $224.8 for Apple. All new Apple A10 Fusion chipset which powers the new iPhones is priced at $26.90. It is manufactured by TSMC on a 16nm FinFET process. Whereas the basebands, RF transceiver, antenna module and other network chips are said to cost $33.90. Just like the earlier iPhones, the 4.7-inch display priced at $43 is the costliest component in the new iPhone 7.

apple-bom-cost

The 1960mAh battery of the iPhone 7 which is slightly bigger than the 1715mAh battery on its predecessor cost only $2.50 for the company. The Samsung’s 2GB RAM and SK Hynix’s 32GB internal storage will combinedly cost $16.40. Both the 12MP OIS rear camera and the 7MP FaceTime camera, which are the biggest upgrades will be adding $19.90 to the bill. New stereo speakers along with the taptic engine, antennas, connectors, and microphones are mentioned to cost $16.70.

The rest of the hardware like sensor, Cirrus Logic amplifier, barometer, accelerometer, gyroscope, NFC are estimated to cost $14. This is all about the device and the hardware inside, now the accessories included in the box like 5W USB power adapter, Lightning cable, Lightning to 3.5mm audio adapter, and Lightning EarPods will combinedly cost $11.80. The Bluetooth, WLAN, GNSS and their respective module costs another $8. A $1.3 Lattice ice40 semiconductor is also present on the iPhone 7.

The Aluminum body, speaker and lighting port vents, physical buttons add $18.20 and the power management diodes will be costing $7.20. Adding all these, the device is estimated to cost $225 while the company sells more than 3X times at $695. On the other hand, iPhone 7 is the costliest smartphone for the company to manufacture, at least according to IHS. Also, check out the worldwide pricing of the iPhone 7 to known in which the countries the device will be costlier.

Stay tuned on Phone Radar for the details of iPhone 7 Plus’s bill of material!

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