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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