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iPhone 7 costs more than iPhone 6s to Apple: Report

Despite the difference in the manufacturing cost, Apple is selling the iPhone 7 almost at the same price of iPhone 6s.

Apple is spending much more to manufacture iPhone 7 that what it costs to make an iPhone 6s, according to IHS Markit, a global financial and analysis firm.

As per the firm, an iPhone 7 costs about $224.80 (Rs 15,067 approximately) when compared to iPhone 6s which costs around $187.91 (Rs 12,594 approximately). What is noteworthy here is that despite the difference in the manufacturing cost, Apple is selling the iPhone 7 almost at the same price of iPhone 6s - $649 for the 32GB variant.

"Total BOM costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple's main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses," said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.

Which means, has Apple compromised a bit on the margin this year? Well, it seems like but IHS Markit claims that Apple still manages to make more margin on hardware than any other brand including Samsung.

Moreover, Apple has been struggling to supply the latest iPhone with both the regular variant and Plus variant being out of stock in most of the stores. Further, the two new colour variants – Jet Black and Matte Black seems to have grabbed a lot of attention with both the colours being the quickest to go out of stock.

In addition to that, the demand for iPhone 7 Plus has been more this time as reported by Slice Intelligence. This is majorly due to the dual-camera implementation which no doubt offers better photography experience.

iPhone 7 and iPhone 7 Plus is coming to India on October 7 with a price starting from Rs 60,000 for the iPhone 7 and Rs 72,000 for the iPhone 7 Plus.

(Source: India Today)

First Published : Wednesday, September 21, 2016 - 12:12




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