The cost of material used to make the 64GB version of iPhone 8 and iPhone 8 Plus has slightly increased, compared to previous models. According to research firm IHS Markit, the estimated bill of material (BOM) of $247.51 for iPhone 8, and $288.08 for iPhone 8 Plus, "is the result of slower annual component cost erosion tied in with additional features."
Rhoda Alexander, IHS Markit's director in charge of tablets and PCs, shared some interesting observations with Forbes over the weekend regarding Apple's rumored new bezel-less iPad Pro model which, according to other analysts, would house a display measuring 10.5 inches inside a body the same size as 9.7-inch iPads.
According to Rhoda, the new iPad Pro model should have a 2,224-by-1,668 display with the same pixel density as 9.7-inch iPads. For context, Apple's 12.9-inch iPad Pro has a 2,732-by-2,048 Retina display at 264 pixels per inch and its 9.7-inch counterpart has a 2,048-by-1,536 screen, also at 264 pixels per inch.
IHS, a technology research firm, has found that Apple is making huge markups on the bands, with an entry-level 38mm fluroelastomer Sport band which retails for $49 costing an estimated $2.05 to make.
It should be noted the figure excludes other related costs such as packaging, shipping, marketing, cost of sale and so forth and “may not capture the full cost of the material Apple uses to make the band,” IHS analyst Kevin Keller told Reuters.
Apple's latest iPad Air 2 costs roughly the same as its predecessor, an analysis from the research firm IHS quoted Tuesday by Re/Code has determined. An entry-level Wi-Fi-only model with sixteen gigabytes of storage costs an estimated $275 in parts, excluding costs associated with sales, marketing, advertising, packaging, software licensees, research and development and so forth.
It's interesting that Apple pays about $60 for NAND flash chips in the high-end 128GB model and only $9.20 on memory for the low-end 16 GB devices. At retail, the difference between the 128 and 16GB model is $300. “Apple reaps a pretty good profit for all that memory,” IHS analyst Andrew Rassweiler observed.