The iPhone 7 and 7 Plus is Apple’s newest flagship phones. And despite the phones lacking the 3.5mm jack – something we are very much accustomed to, the cost of making the iPhone 7 is more expensive than last year’s 6s.
Now, just before I give details as to how much it cost to make the iPhone 7, let me clarify something.
Apple’s CEO, Tom cook, once mentioned that these types of estimates are never ‘anywhere close to being accurate‘ and they are typically ‘much different than the reality‘.
Having said that, According to data from IHS Markit, making the iPhone 7 costs up to $219.80. Of course, that excludes labor costs.
Labor cost is valued to be around $5. Hence, adding that to the initial figure, making the iPhone 7 is said to cost around $224.80. This of course, is for the base version which is the 32GB version.
The iPhone 6s, according to same data from IHS Markit, costs around $187.91 to make. That’s a $36.89 difference.
Going by this report, Apple makes an expected profit of $424 from each unit sold, owing to the fact that the 32GB version of the iPhone 7 retails at $649. This same device costs over N400,000 in Nigeria.
Just before you jump into conclusions, the figure above doesn’t include outside costs, which includes research and development, marketing or events, and so on.
As earlier mentioned, these figures may not be exactly what it is in reality. However, it wouldn’t hurt to see things from the glasses. Certainly not.