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Here’s How Much it Costs to Manufacture One iPhone

Ever splashed some huge cash for an iPhone before? No doubts about the quality of the security and cameras of this famous creation of Steve Jobs.

While Apple’s customers might brim with smiles at the purchase of a new iPhone and be confident to flash the apple embossed behind the phone, quite a significant part of their satisfaction may just be held in support by their lack of awareness of the raw value of an Apple smartphone.

The reason this could be true is that Apple’s profit for each smartphone they make is a bit on the high side when you consider it carefully.

According to Technology blog IHS Markit, the 32-gigabyte iPhone 7 which sells for $649, has its manufacturing cost around $225. The 6s which also sells close to the $650 mark, costs $188 to manufacture.

To be fair to Apple, it’s true that $188 is just the manufacturing cost. Like all businesses, Apple needs to have a significant profit margin to take care of other expenses such as the research and development that makes the production of their phones possible, costs associated with developing and maintaining their operating system, cost of marketing and advertising etc.

Even then, the profit slapped on Apple’s smartphone device is still a bit huge and many would agree the iPhone does not seem very far from a rip-off. There’s $424 profit for instance, on each iPhone 7 sold by the company.

Fair or not? What do you think? Are the social perks of having an iPhone worth paying this much for?

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