A new iPhone 6 teardown reveals why Apple wants you to buy more storage
Just how much does that new iPhone 6 or iPhone 6 Plus that you’re carrying cost Apple to make? The folks over at IHS have the answer and gave it to Re/Code and CNBC first.
In a preview to their full report, the research firm reveals that the iPhone 6 costs between $200 and $247 in parts and labor. By contrast, the iPhone 6 Plus starts at $216 and can reach as high as $264 for the 128GB model. The labor cost associated with assembly is between $4 and $4.50 per handset.
The iPhone 6 sells for between $649 and $849 without a contract, while the iPhone 6 Plus will set you back between $749 and $949.
Apple charges $100 to $200 more for iPhone models with higher memory storage. However, it only spends $47 more for the memory on 128GB iPhone versions, compared to the 16GB versions. This translates into profit margins of about 1 percent higher on the 128GB models, or 70 percent versus 69 percent.
Andrew Rassweiler, IHS analyst notes, “They (Apple) seem to be configured and priced to encourage you to buy the models with the higher memory.”
Other findings:
- Taiwan Semiconductor Manufacturing Co. is producing 60 percent of the Apple A8 chips found in the iPhone 6 and iPhone 6 Plus. This compares to the 40 percent being manufactured by Samsung.
- The displays come from LG Display and Japan Display, costing $45 on the iPhone 6 and $52.50 on the iPhone 6 Plus. The cost for the smaller 4.7-inch model is only four dollars more than the four-inch display used on the iPhone 5s.
- The two new iPhones use Gorilla Glass 3, (Corning’s) third-generation product.
IHS will release their entire findings, which include teardown photos, later today, Sept. 23.
