iPhones are more costly just like other models and brands like the Google Pixel 4 XL and Samsung Galaxy S20 Ultra 5G. The cost of designing an iPhone depends on features, architecture, battery, and model.
Apple has negotiated the costs of the components of making an iPhone with the suppliers, so there is no standard manufacturing cost. In one period, Apple may spend less acquiring improved components, and in another period spend more to get better performance and reliability.
iPhone X( 2017)
Launched in 2017, the iPhone X is designed, produced, and marketed by Apple Inc and is one of the best smartphones in the iPhone development. The iPhone’s cost was designed from a 7MP selfie camera, 12MP camera, 3GB RAM, a 5.8″ highly- AMOLED screen, and the Apple A11 Bionic chip.
In terms of the sensor, the first one was the X with Face ID coupled with proximity, compass, accelerometer, and a gyro. The material cost of making the iPhone X (2017) was estimated at $370.25, with the retail price of the iPhone X(64GB) starting at $999.The retail price and the material cost differed by 37.06% with a projected markup being 169.82%. The projected markup does not include manufacturing and business costs.
iPhone 11 Pro Max (2019)
According to tech reviewers on UK Best Essays, the iPhone 11 Pro Max that was released in 2019 is an advanced and powerful smartphone featuring an A13 and an excellent Pro display. The key cost components of this smartphone included the 12 MP front camera, the 12MP rear camera. It also included the 4GB RAM, A13 Bionic Chipset, and the super-powerful OLED touch screen.
This smartphone featured sensors such as a compass, gyro, Face ID, accelerometer, barometer, Siri, and proximity. The material cost of manufacturing the iPhone 11 Pro Maxi was estimated at $450.50, with the retail price of the same starting at $1099. The retail price and the material costs differed by 44.63%.
The Taiwanese companies facilitate the assembling of the phone that takes place in China with the wage costs starting at $3.15 per hour. China is a preferred assembling location due to the availability of cheap labor. Additionally, the specific skills for iPhone manufacture such as tooling engineering are not available in the United States anymore.
iPhone XS Max (2018)
The iPhone XS Max was released in iOs 12 in September 2018. The ost components of making this phone include the 7MP rear camera, the 12 MP cameras, 4GB RAM, A12 Bionic Chip, and the 6.5″ AMOLED display.
The iPhone features various sensors such as a compass, gyro, proximity, Face ID for maximum security, and an accelerometer. The cost breakdown of this phone is as follows:
- Material cost estimate- $390
- Retail price of the 64GB version- $1099
- Difference between the retail price and the material cost- 35.49%
- Projected markup- 181.79%( excluding manufacturing and business costs)
The modem cost as of 2018 was higher for Apple due to the shift from Qualcomm technology to Intel technology. Further, the smartphone’s A12 processor was also more costly due to the 7nm technology.
iPhone 6S (2015)
iPhone 6S was launched by Apple Inc. on iOS 9 in 2015 and includes advanced hardware such as the 7000 series aluminum alloy chassis. The bill of materials included the 7MP front camera, 12MP rear camera, Apple A9 chipset (2GB RAM), 4.7” IPS LCD touch screen, and 1715mAh battery.
In terms of sensors, the iPhone 6S had a compass, fingerprint scanner, proximity, an accelerator, and gyro. The material costs were estimated at $211.50 with the retail price of the 16GB version starting at $649. The retail price and the material costs deferred by 32.59% with the phone’s projected markup being 155.44%.
iPhone SE (2016)
The iPhone SE was released in March 2016 with advanced video recording, camera, chip, and display features. It was a cheaper phone as the manufacturer was attempting to come up with a budget phone.
The cost components of this phone included the 2GB RAM A9 chip, 4.0” touchscreen, 1.2 selfie and 12MP rear camera, and the 1624mAh battery. The sensors included a fingerprint scanner, proximity, gyro, an accelerometer, and a compass.
The material cost of making the iPhone SE was approximately $156.20 with the phone’s retail price starting at $399. The retail price and the material costs differed by about 39% and the markup was projected at 155.44%. The manufacturing and business costs were not included in the projected markup.
iPhone 6 ( 2014)
The iPhone 6 smartphone was released on iOS 8 in September 2014 as an eighth-generation iPhone. It featured a larger 4.7 and 5.5 inches display, upgraded cameras, a faster processor, and improved Wi-Fi and LTE connectivity.
The cost components included the 1.2 MP front camera, the 8MP rear camera, LCD touch screen (47.7″), Apple A8 processor, and a 1810mAh battery. The material costs of the iPhone 6 were estimated at 196.10 while the retail price started at $649. The material costs and the retail price differed by about 30% with a projected markup of 230. 95%.
Released in 2016, the iPhone 7 is a tenth-generation smartphone designed and marketed by Apple Inc. The phone’s design resembles that of iPhone 6 and iPhone 6S but has new color options dust and water resistance and improved antenna bands.
The cost of manufacturing this phone came from the 7MP selfie camera, 12 MP front camera, 4.7″ LCD screen, 1960nAh battery, and the A10 Fusion chipset. iPhone 7 included sensors such as a compass, fingerprint scanner, gyro, accelerometer, and proximity.
The total material cost of manufacturing the iPhone 7 was $219.80 and the retail price of the 32GB version starting at $649. The difference between the retrial price and material cost was 33.87 % with an expected markup of about 195%.
Apple Inc. has made tremendous progress in designing and marketing trendy and advanced iPhones with diverse features. The cost of manufacturing an iPhone includes the hardware and software components such as sensor capabilities, RAM capacity, screen type, and recording capabilities. The retail price depends on many factors that bring about the difference between the final retail price and the manufacturing costs.
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