Apple apparently makes an estimated $500 for every iPhone 6s sold, according to an analysis by Bank of America Merrill Lynch cited by BusinessInsider.
The investment bank estimates that the components part of the iPhone 6s cost Apple $234, marking a very slight increase from an estimated $200-$247 in parts and labor to build the iPhone 6.
Merrill Lynch’s numbers only account for estimated component costs and exclude spending on labor, research and development, software licenses, product assembly, shipping, marketing and other affiliated costs.
The 64GB iPhone 6s sells non-subsidized for $749 and Apple is pulling in an estimated $515 from each sale before the costs of manufacturing and distribution is factored in.
The biggest part of that cost is $127 for semiconductor parts, including Apple’s third-generation 64-bit processor, the A9, which costs the company to produce an estimated $25. Various sensors like the Touch ID fingerprint reader and the NFC module add up to around $22 and 64 gigabytes of flash storage costs Apple an estimated $20.
The most expensive part of the iPhone 6s is the Retina HD display with 3D Touch technology, which comes in at around $50 on its own.
“Other core components like the screen, camera, and battery will add up to $73, and the other stuff (like the case) will add another $33,” notes Business Insider.
The slight increase in Apple’s outlay on parts versus the previous-generation models is expected as the iPhone 6s is a brand new device so economies of scale have yet to come into play.
As Apple’s suppliers perfect the iPhone 6s manufacturing process and build millions of the new devices, the of their components will come down over time, improving the firm’s profitability.
Apple is now taking pre-order for the iPhone 6s and iPhone 6s Plus ahead of the 25 September launch in the United States, United Kingdom, Canada, Germany, Italy and a few other markets.
Source: Business Insider