How Much Does It Cost Apple to Build an iPhone 7?

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The iPhone 7 and iPhone 7 Plus cost anywhere between $650 and $970, with variants coming equipped with powerful A10 Fusion processors, expanded batteries, waterproofing, and dual-lens camera systems. There’s a lot of tech packed into the guts of Apple’s cutting edge flagships.

But how much do they cost to make? CNN Money has decided to take a crack at approximating the production costs of the iPhone 7.

It’s important to note that the CNN Money report relies on rough approximations, as it is not privy to every detail of Apple’s production process. Nor does it account for costs such as the price of labor, research and development that goes into creating an iPhone and ancillary costs such as marketing and distribution. Phone Arena notes that the numbers have likely been derived from standard prices for popular smartphone components.

But as far as ballpark estimates go, it’s interesting enough to take a look at. The following is the breakdown of costs by iPhone 7 component:

  • Screen: $37
  • Battery: $4
  • Cameras: $26
  • Logic Board: $74
  • Speakers: $11.50
  • Casing: $22
  • Other parts: $117.50

According to its estimates, a 128 GB iPhone 7 costs around $292 to make, whereas a single unit retails for $750. With manufacturing expenses amounting to only 39% of the full retail price, it’s a hefty markup, but Apple can certainly get away with it. Its fans enthusiasm for iPhones remains largely undiminished worldwide, even if new competitors such as Xiaomi and Huawei have been coming out of the woodworks.

Early estimates suggest that the iPhone 7 and iPhone 7 Plus have matched last year’s iPhone 6s sales.

Do you think this estimate is accurate? Why or why not?

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