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iPhone 6s Plus Costs $236 to Make and $749 to Buy, IHS Teardown Analysis Shows

The iPhone 6s Plus comes with a
range of exciting hardware
modules upgrade: the A9 SoC, 3D
Touch display, better camera
sensors, variant of Gorilla Glass 4
display protection layer, new
Taptic engine, and a spacecraft-
grade series 7000 aluminium body.
So how much do these components
and other parts of the new iPhone
cost? One third of what Apple is
charging you, reportedly.
The company only spends about
$236 (roughly Rs. 15,000) to
make and assemble the iPhone 6s
Plus, as per a teardown analysis
by IHS Technology. This should
displease a few users as the off-
contract starting price of the
iPhone 6s Plus is $749 (Indian
pricing could be around Rs.
72,000), which is apparently more
than three times what Apple
spends on making the phone.
Do note these figures are just a
rough estimation and doesn’t
factor in other expenses –
shipping, warehousing,
marketing, research and
development – Apple and other
companies make to sell these
smartphones, as IHS Senior
Research Director Andrew
Rassweiler noted when describing
the limitations of the teardown
IHS Technology noted that the
new display – 3D Touch – costs
around $52.50 (roughly Rs.
3,500), while the A9 SoC paired
with M9 coprocessor costs $22
(roughly Rs. 1,500). The memory
costs $17 (roughly Rs. 1200),
whereas the 16GB storage costs
$5.50 (roughly Rs. 360). The
research noted that the camera
sensor costs $22.50 (roughly Rs
1,500), while other mechanical
and electro-mechanical summed
up to $42 (roughly Rs. 2,800).
“The 3D touch system is novel,
and when combined with Apple’s
Taptic Engine, these features add
about $10 to the total bill of
materials cost,” Andrew
Rassweiler, senior director of
cost benchmarking services for
IHS Technology said. “Haptic
systems are fairly low-tech and
forms of haptic feedback like this
have been implemented for years
in other devices using traditional
vibration motors, but the iPhone’s
implementation of this feature is
If prices are accurate, Apple has
spent only $16 (roughly Rs.
1,100) more than it spent on the
manufacturing and assembling of
the iPhone 6 Plus . The firm also
said that the iPhone 6s would cost
around $211.50 (roughly Rs.
14,000) to make, though it noted
that it hasn’t actually opened the
device and the figure is just a
calculated estimation.
To put the price in perspective,
the Samsung Galaxy S6 Edge costs
$290.45 (roughly Rs. 19,000) to
manufacture and assemble,
according to IHS Technology, and
was priced at $700 at launch.

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