Quick TEQ: IHS, an American research firm has deduced that the actual manufacturing and assembling cost of an iPhone SE is USD 160.
The iPhone SE is currently the cheapest iPhone that can be purchased in the market right now. TO be specific, you can buy the iPhone SE for only USD 399. However, Apple is selling the iPhone SE at USD 399, and making a ton of profit from it, then how much do you think it costs to build and assemble as iPhone SE?
According to IHS, a US based research service, it costs USD 160 to build and assemble the iPhone SE. That means that by purchasing the iPhone SE for USD 399, you’re actually paying USD 239 or INR 16000 more. To make things simpler, you are paying 2.5 times more than the actual manufacturing price. Are profit gaps like these really necessary Apple?
IHS was able to put a number on the iPhone SE, by opening the device, analysing the parts inside, creating a bill of materials and estimating costs of manufacturing and assembly.
According to IHS, the Corning Gorilla Glass display, with the integrated touch sensor costs Apple USD 20, which is almost half the cost of the display in the iPhone 5S.
The interesting part is that the iPhone SE 64 GB variant costs USD 170 to build and assemble, but the selling price of the 64GB variant is USD 499, which is a USD 100 more than the 16GB variant. Apple is essentially selling the iPhone SE with the higher storage capacity for USD 100 more, but with only a USD 10 increase in production cost.
IHS further disclosed that the manufacturing and assembly costs of the iPhone 6 cost Apple USD 200, the iPhone 6S Plus cost it USD 236, and the iPhone 5S cost the company USD 191 to build and assemble.
Do you think that Apple is right to selling their products at such high prices, considering the actual manufacturing and assembly costs? Do let us know in the comments below, or send us an email at contact.TEQnation@gmail.com.