It Cost Apple Just $160 To Build The iPhone SE Being Sold For $399

Apple recently launched a new smartphone to it’s catalog of iPhones known as the iPhone SE. The SE actually stands for Special Edition and not sucker edition as most people have termed it.

The new smartphone which is basically a caricature of the iPhone 5s in terms of design, is basically an answer to those who still prefer smaller inch smartphones over the larger iPhone 6 and 6s duo.

iPhone SE phone cost $160 to build

The iPhone SE features same specs as seen on the 6s including same chipset, camera, 4K video recording feature amongst others. The basic feature on the 6s that is absent on the SE is 3D touch.

While Apple felt they were a little bit considerate by launching the iPhone SE with a starting price of $399 for the 16GB model, recent research by IHS has proven that the smartphone cost Apple around $160 to build.

The firm conducted a tear down analysis on the 16GB version of the SE to determine the identity of suppliers and to assess the approximate cost of the components used.

iPhone SE tear down

Over the years, Apple has subsequently been talked into providing an SD card support in other to expand storage capacity but this has constantly fallen into deaf ears. The fruit company still places an extra $100 for an extra storage capacity. Thus, the 64GB version of the iPhone SE is being sold for $499.

Interestingly, this same 64GB iPhone SE device is said to have cost Apple $170 to build. That’s an additional $10 from the cost of building the 16GB version. Doing the maths, the 16GB version generates $239 income for each device sold.

Latest report has proven that the iPhone SE hasn’t been doing well in the market. The iPad Pro which was launched same day with the SE is actually doing better.

But come to think of it, who says manufacturing phones isn’t a good business?

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