I am sure you must have wondered at one point or another, about how much it costs to produce an iPhone. Well, in a ,matter of minutes, you’ll get to quench that hunger to know. Just do me a favour, STAY WITH ME.
IPhone 7 is similar in design to iPhone 6 and iPhone 6S, though with a “mirrored” finish. Alongside the existing Silver, Gold, and Rose Gold colors, the device is offered in new Black and “Jet Black” colors. The”Jet Black” color is a darker shade with a high-gloss finish;
It is created through a multi-step process, beginning with ananodization phase to make the surface of the casing a porousaluminum oxide, and then using a machine to “wipe” the casing through a powdered compound, absorbed by aluminum oxide. The process is concluded with an “ultra-fine particle bath” for additional finishing; the entire process takes less than an hour.
THE COST OF PRODUCTION?
Apparently, the iPhone 7 component costs are estimated to start at $219.80. With the display racking up to $43, followed by an Intel modem and other baseband chips worth an estimated total of $33.90. The third most expensive item is Apple’s quad-core A10 Fusion chip which costs about $26.90. Finally, the larger 1,920 mAh battery costs about $2.50. This cost excludes other expenses incurred.
I hope it would interest you to know that if you buy the new 32GB variant of the iPhone 7, Apple makes an estimated profit of $424 on each unit it sells (This is based on the cost of making each iPhone 7 and excludes the research, development, or marketing costs). Nice profit margin I must say.
Also despite the removal of the headphone jack, IHS claims that the iPhone 7 is more expensive to manufacture than last year’s iPhone 6s.
On September 15, 2016, one day before the iPhone 7 went on sale, Apple announced that due to high demand, they have sold out of all Jet Black iPhone 7’s, and all colors of the iPhone 7 Plus, and that those models won’t be available in Apple Stores for walk-in customers on launch day. This may be because Apple opened up more reserve slots for customers in the iPhone Upgrade Program after those customers complained about the system used to reserve the phones had the slots filled up quickly after pre-orders opened, and customers couldn’t get the phone they wanted. These issues also caused a class action lawsuit to be filed against Apple because of the way they handled the system.
Well, it seems to me that Apple are making a whole lot of money from this new release.