“According to the report published by the analysis firm, the components required to manufacture the iPhone 8 cost Apple $247.51”
Apple recently took to the stage and announced the latest iPhones which include the iPhone X, the iPhone 8 and the iPhone 8 Plus. While the iPhone X is yet to go on sale, the pre-booking for the iPhone 8 and the iPhone 8 Plus has already begun with the base model of the former priced at Rs 64,000 and that of the latter at Rs 73,000. Now, a recent report by IHS Markit has surfaced online which outlines the production cost of the two models.
According to the report published by the analysis firm, the components required to manufacture the iPhone 8 cost Apple $247.51 (~Rs 16,195.82) whereas the components required to manufacture the iPhone 8 Plus cost $288.08 (~Rs 18,850.51). According to sources, the total cost for manufacturing an iPhone 8 Plus (which includes the cost of the components and the assembly) is $295.44 (~Rs 19,331.38). This figure is $17.78 (~ Rs 1,163.61) higher than the cost required to manufacture the iPhone 7 Plus.
The reason for the spike in the cost of the production of the iPhone 8 Plus, as IHS MARKIT puts it, “is a result of slower annual component cost erosion tied in with additional features”. Moreover, the increased storage of the base variant of the iPhone 8 as well as the addition of wireless charging could also be accredited to the higher production costs.
As far as the cost of the individual components is concerned, the display of the new iPhones is the most expensive part and the 5.5-inch screen takes $52.50 (~Rs 3,436.91) to make. The connectors and the camera setup cost $50.95 (~Rs 3,334.68) and $32.50 (~Rs 2,127.12) respectively. The NAND memory which was developed by SanDisk sets Apple back by $32.10 (~Rs 2,100.95) whereas the A11 Bionic chip costs $27.50 (~Rs 1,799.88) to make.
Pre-orders for the iPhone 8 as well as the iPhone 8 Plus have already begun in India and buyers can expect shipping to start from 29th of this month.