• Apple Spends More on Making the iPhone 6s Plus Than They Did on the iPhone 6 Plus



    A couple of weeks ago, a pricing estimate put the cost of manufacturing the iPhone 6s at around $234 per unit, and as we know, it's only an estimate on the parts necessary to assemble the iPhone, not on the costs to manufacture, market, ship, and get the device into the hands of its customers.

    Now, IHS iSuppli believes they have a somewhat accurate BOS (bill of sale) for the individual parts of the bigger brother handset; the iPhone 6s Plus. Once all of the parts to build a 16GB model of the iPhone 6s Plus have been purchased, IHS believes Apple has shelled out about $231.50 per unit. Apple is then said to pay an additional $4.50 to assemble each iPhone 6s Plus, putting the total cost to manufacture a single iPhone 6s Plus at $236. Still yet, this doesn't include the costs to market and ship the devices, but it does peg the manufacturing estimate at about $16 more than the previous generation iPhone 6 Plus.



    Notably, the parts alone have been given a smaller price tag than that of the iPhone 6s, which had its price estimated about two weeks ago. There is a lot of wiggle room for interpretation being that these are just estimates and not 100% factual pricing amounts. But even at these estimates, give or take a little, Apple is making a huge bank charging $649+ for each handset, whether it's an iPhone 6s or iPhone 6s Pus.

    “3D Touch and Apple’s Taptic engine are among the more notable feature upgrades found in this latest round of iPhones,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Technology. “With each generation the company makes measured, incremental technology improvements to its iPhone line, and this time around those changes are increasing Apple’s per-unit material cost.”

    IHS adds that Apple is careful to only improve certain aspects of the iPhone each year, such that the upgrades don't affect the cost of production that much year after year. Apple has been known to adopt newer technologies later in the game, such as the 12 megapixel and 4k camera that they've just added after years of using a lower-quality 8 megapixel and 1080p camera.

    Another thing that IHS points out is that bringing 3D Touch to the iPhone 6s and iPhone 6s Plus is expensive for Apple, adding $10 of cost per unit alone over the previous generation. The firm also comments on Apple's choice of NAND flash storage, which is so cheap that Apple is continuing to make huge profit gains by offering what it does:

    "NAND Flash is now so cheap it’s almost irrelevant, but Apple monetizes this difference with consumers, to the tune of $100 for each additional step up in memory capacity,” Rassweiler said. “For example, a 64 GB iPhone now costs Apple about $17 more to make than a 16 GB iPhone, but Apple charges iPhone buyers $100 more for the increased memory. This is part of Apple’s ongoing strategy to improve profits by selling a product mix that is heavier in the higher-end iPhones.”

    Each year, we have to take this kind of information with a grain of salt. Being that they're only rough estimates, it gives us a general look at what Apple could be paying, but there's no way to estimate whether Apple gets some kind of bulk discount or if they actually pay more for those parts. As Tim Cook has said before, these estimates can be far off, but nonetheless it's still interesting.

    Source: IHS iSuppli
    This article was originally published in forum thread: Apple Spends More On Making the iPhone 6s Plus Than They Did on the iPhone 6 Plus started by Anthony Bouchard View original post
    Comments 3 Comments
    1. steve-z17's Avatar
      steve-z17 -
      I still think Apple should make one size for all their phone's. Sell just a 128GB size in all colors and come to a balanced price to charge for it. We're getting charge an extra $100 for something that costs Apple $4...it's crazy. They can still make a huge profit from that and everyone gets a phone with a ton of space.
    1. chanl's Avatar
      chanl -
      well at least there is a definite quality difference with this 6s over the 6.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by steve-z17 View Post
      I still think Apple should make one size for all their phone's. Sell just a 128GB size in all colors and come to a balanced price to charge for it. We're getting charge an extra $100 for something that costs Apple $4...it's crazy. They can still make a huge profit from that and everyone gets a phone with a ton of space.
      Why don't you think of it like you are getting a 64gb phone for $100 less whereas apple only gets $4 discount for a 64gb hard drive rather than a 128gb. So I say we are getting a very good deal. Hey for $8 less what apple pay, they give you $200 off if u get a 16gb. So rather than paying $945 for 64gb and $941 for 16gb, you only pay $849 and $749. Comparison based on 6s plus.
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