Ondrej Holzman Apple offers the cheapest iPhone 6 for $649 without carrier subsidies. The larger iPhone 6 Plus is a hundred dollars more expensive, and it's a great deal for Apple—the 5,5-inch iPhone only costs about $16 more to make than the smaller phone. The California company's margins are growing with the larger model.
The price of components and the overall assembly of the phone was calculated by IHS, according to which the iPhone 6 with 16GB of flash memory will cost $196,10. Including manufacturing costs per se, the price increases by four dollars to a final $200,10. An iPhone 6 Plus in the same capacity costs only less than $16 more to produce, for a combined production cost of $215,60.
The maximum to which the purchase and production price of the iPhone 6 Plus can climb is $263. Apple sells such an iPhone, i.e. with 128GB of memory, for $949 without a contract. For the customer, the difference between 16GB and 128GB of memory is $200, for Apple only $47. The Californian company thus has a roughly one percent larger margin on the largest model (70 percent for the 128GB version versus 69 percent for the 16GB version).
"Apple's policy seems to be to get you to buy models with higher memory," says Andrew Rassweiler, an analyst at IHS who leads disassembly and research of the new iPhones. According to him, one gigabyte of flash memory costs Apple about 42 cents. However, the margins on the iPhone 6 and 6 Plus are not fundamentally different from the previous 5S/5C models.
TSMC and Samsung share the processors
The most expensive component in new Apple phones is the display together with the touch screen. The displays are supplied by LG Display and Japan Display, they cost $6 for the iPhone 45, and $6 for the iPhone 52,5 Plus. By comparison, a 4,7-inch display costs just four dollars more than the iPhone 5S's seven-tenths of an inch smaller screen.
For the protective layer of the display, Corning maintained its privileged position supplying Apple with its Gorilla Glass. According to Rassweiler, Apple uses the third generation of durable glass Gorilla Glass 3. On sapphire, as was speculated, Apple for iPhone displays for logical reasons he didn't bet.
The A8 processors present in both iPhones are designed by Apple itself, but it outsources production. Original news they spoke that Taiwanese manufacturer TSMC has largely taken over production from Samsung, but IHS says TSMC supplies 60 percent of the chips and the rest remains in Samsung production. The new processor costs three dollars more to produce ($20) than the previous generation and, although it has higher performance, it is thirteen percent smaller. The newly used 20-nanometer production process is also to blame for this. "The transition to 20 nanometers is very new and advanced. That Apple was able to do this along with switching suppliers is a big step," said Rassweiler.
Also new in the iPhone 6 and 6 Plus are NFC chips designed for the Apple Pay service. The main NFC chip is supplied to Apple by the company NXP Semiconductors, the second company AMS AG supplies a second one called the NFC booster, which improves the range and performance of the signal. Rassweiler says he has yet to see the AMS chip in operation in any device.
and R&D, distribution costs who will pay? these comparisons are just right for sensational headlines
if only that, it has to pay for more things than we can imagine, including the whole development..
Of course.. you have to pay the incompetent developers.. who released an update that makes it impossible for you to use the iP6.. who delayed the development of the iP6 for profit because everyone suddenly needs a shovel that is not even suitable for clearing snow? I'm staying with 5S as far as phones are concerned, I won't get a cent from them anymore.
and from what else would apple generate the hundreds of billions of profit, if not from the margin on iphones?
in the future, a file on software... in time, people will stop enjoying paying for overpriced mobile phones. Let's say 10 years ago, a laptop cost 50, and today a person can buy a decent laptop for 10.
it can't be calculated like that, it's clear that the production price of the iPhone is lower, it clicks for everyone, but if the author has already written this article, I would be interested in the production price of the new Note.4 Edge, which Samsung also sells for 25-28 kc , he doesn't like Samsung, only Apple is in his stomach, I'm asking the author for an article where the production price of the new Note 4/4Edge is compared, but I'll try to answer a maximum of 250 dollars, am I right, Mr. Author??? It is clear to me that the production price is something completely different than the retail price
Ms. authors, when you publish such articles, you are causing conflicts in the discussions on the forum, you should put more meaningful articles here and not compare the production price with the retail price, even the new Skoda Octavia RS is sold for almost 900 CZK and the production price is a maximum of 200. thousand Czech crowns
Yes, I agree with the article about the production price as long as you have people, it's like telling a person that he will work for food and accommodation :-)))))))))) Why should a worker receive 15-20 thousand on his passport, when he can pay for housing and make food for 1/4 :-)
A really intelligent article, one could almost say that other manufacturers are subsidizing it so that someone buys it...
I really wouldn't expect a similar tendentious article here.
exactly, the price does not consist only of the production price, but also of the software development, advertising, shipping costs, etc. That's why I think that the prices of apple products are fine if we take into account that these are premium products. Regardless of the fact that the prices of high-end products from other manufacturers are the same and I would dare to say that their costs are lower than those of Apple due to the lower quality of the components and the lower quality of the output control.
Why should competitors have lower quality components, etc.? This is nonsense and Apple is not a manufacturer - it only has development and, like others, in practice everything is produced in the cinema - specifically for big brands it is produced by Foxconn, which is Taiwan's largest company with the production of mobile phones, consoles (xbox, ps3 and newer models ,ps4) and the transfer of other products, for the sake of interest, one factory in Shenzhen has about 500 people. In total, there are more than 1 million people in all the factories, including the small ones in Pardubice. All information available on the website...
I think that the final price with marketing, transport, OS development and a ton of other things (Apple employee salaries, even if they only design the manual or the box) can be around 500 dollars
No one is forcing anyone to buy an iPhone. Whoever pays for it knows why. Hello
The article on the other hand also nicely outlines how much it would take to make the phone even more perfect, e.g. more RAM, more memory, sapphire glass, but the margins would drop below 70% if the price were to be increased by just the price of the components. It is difficult to discuss the reasons for whether such improvements would be reflected in higher sales and thus also profit.
I think that it is admirable the results of sales, profits, etc. that Apple has. And why should they discount? Although they are not so technologically advanced anymore, but as long as people pay? Mercedes, BMW, etc. will also never be sold new for 200. 10 million iPhone6s is admirable, and the biggest profits are from the software, otherwise there is practically no possibility to download it through the apple store, and they have huge commissions on everything that no one even thought about - in one of the articles, up to 60 percent, which is the gold mine here: -)