The iPhone 6s Costs Less Than $250 For Apple To Manufacture


While there can be many factors which can be attributed to Apple's success, one of the more important ones is undoubtedly the company's marketing prowess. The company's devices are oft-perceived as being top tier and premium in nature, owing particularly to their equally strong or perhaps greater emphasis towards design than towards specifications and performance.

With such features, come equally high price tags, something about which the company has been receiving strong criticisms. Its latest iPhone 6s and iPhone 6s Plus come with equally hgih price tags, particularly for unlocked devices, so lets take a look at how much does it cost Apple to manufacturer an iPhone 6s.

It Takes Apple Only $234 To Manufacture A Single iPhone 6s

When it comes to large companies, such as Apple, the one thing which they all benefit from is economies of scale. To put it in simple terms, as a company, the larger or bigger you get, the lesser your costs of operation become. So while for a small company, a processor might cost $60 to manufacturer, a multinational giant such as Apple does it for only $25 to manufacturer for the A9. So how much are the 64GB iPhone 6s' manufacturing costs? Lets take a look.

The bulk share of the device's costs comes from its semiconductor parts, which total $127. This include $25 for the A9 (as mentioned above), $36 for its cellular radio, $22 for its sensors that include Touch ID and NFC and $20 for the 64GB flash storage found on the device. The camera, battery and other components add another $73 to its cost, while the housing, buttons and the rest add up $33.

To compare, the final retail price of a 64 GB unlocked iPhone 6s from Apple stands at $749, meaning that the company makes a staggering $515 from each module. Lets round it off to $500 on average for each iPhone and multiply it with expected iPhone 6s and iPhone 6s Plus shipments of 85 million for this year. That leads to profits of $42.5 Billion for Apple at this year's end. Of course, these calculations are based on estimates and speculation and iPhone 6swe'll know the final amount of Apple's revenue only when its balance sheets become available.

Contrasted against last year's iPhone 6, the iPhone 6s seems to have incurred an increase in manufacturing costs as well. Last year's iPhone 6 seemed to have cost Apple around $200 - 247 in manufacturing costs according to an IHS teardown, so we'd expect this year to be better. But maybe all these upgrades such as 3D touch are costing Apple more than it would prefer. Thoughts? Is the iPhone 6s as overpriced as ever? Let us know what you think in the comments section below and stay tuned for more.