Teardown analysis reveals iPhone 6 production costs

23 September, 2014

Hot on the heels of last week’s iFixit treatment, Apple iPhone 6 and iPhone 6 Plus became subject of a more detailed teardown analysis. Performed by the research firm HIS, the breakdown reveals estimates about the smartphones’ production costs, as well as the profit margins they deliver.

Apple iPhone 6 with 16GB of built-in memory costs $200 to build in parts and labor, while a 128GB model requires $247 to put together. The iPhone 6 Plus production costs on the other hand, range between $216 for a 16GB model and $263 for the 128GB version.

Apple’s iPhone 6 family profit margins are estimated to be about 69% for the 16GB device models. The range-topping 128GB versions deliver slightly higher, 70% profit margins.

The most expensive component in the iPhone 6 and iPhone 6 Plus is their display. Made by LG Display and Japan Display, the component costs $45 for the iPhone 6, and $52.50 for the iPhone 6 Plus. Corning Gorilla Glass 3 covers the screen of both models.

Apple’s 20nm A8 processor is made by TSMC and, combined with an attached co-processor, costs about $20. Apple previously relied heavily on its rival Samsung for the production of the iPhone and iPad processors.

NXP Semiconductors provides the NFC chip for the iPhone 6 range. Combined with the rest of its built-in sensors, it costs $22 for both devices.

You can see a video detailing the iPhone 6 and iPhone 6 Plus production costs below. The clip also contains a sped-up iPhone 6 disassembly.

Source


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Reader comments

  • nimborath

no buddy, you are paying for concept of premium. no doubt of good customer support and so.

  • brack

for how long can one milk from an udder, the profit that they would gain with few thousand phones will be enough to cover them

  • nostrik

That be the fact, but its not like completely rearranging the concept of cellphones or such, they are technologies that are present in the industry with cutting edge research and so. I remember when touch screens were brought out as a great revolutio...