Your $650+ iPhone 6 only costs $200 for Apple to manufacture, according to Recode. Using data from IHS, who’ve teared down the device, says Tim Cook and Co. spends $200-$247 in parts and labor to manufacture the iPhone 6. This includes parts and labor fees. Labor costs anywhere between $4-$4.50. This does not include marketing or shipping fees.
And for the 5.5-inch big brother iPhone 6 Plus, IHS says the company spends $216-$263 to manufacture the iPhone 6 Plus.
The most costly component of both devices are their displays. Which are both manufactured by LG and Japan Display which costs $45 and $52.50 for the iPhone 6 and iPhone 6 Plus respectively. Corning manufactures the protective layer of the display which is made out of third-generation Gorilla Glass.
Recode also mentions costs of other parts of the devices:
- A8 processor and attached co-porcessor cost a combined $20
- Around 60% of A8 chips are manufactured by TSMC, the other 40% come from Samsung
- Apple charges $100 to $200 more for iPhone models with higher memory capacity, but its cost for the additional memory is only $47 more for the 128GB versions than for the 16GB versions
- NXP’s NFC chip, Bosch’s barometric sensor and various other user interface/sensor parts cost a combined $22
Both devices set a record during opening weekend, selling over 10 million units in 3 days, and nearly all retail stores are in short supply.
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