Costing $200 To Make, The IPhone 6 Should Offer Big Profits For Apple

Posted: Sep 27 2014, 4:17am CDT | by , in News | Apple


Costing $200 to make, the iPhone 6 should offer big profits for Apple
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Judging from a teardown by researcher IHS, the manufacturing costs of the iPhone 6 and 6 Plus should help Apple maintain its margins -- among the highest in the smartphone market.

In this world of transparency it is tricky to continue anything a mystery and what used to be an extremely private matter is presently simply an open talk. The teardown of the iphone 6 and its dissection has brought us to the conclusion that it took 200 to $247 in parts and work to fabricate an iphone 6. For the bigger iphone 6 Plus then again, the expenses start at $216 for the beginning model and go as high as $263 for the 128 gigabyte model.

These evaluated expenses taken from the teardown dissection originate from the exploration firm HIS and the discoveries have been imparted to Re/code and CNBC. The report incorporates expense of work connected with gathering as in the middle of $4 and $4.50 for every gadget. We might conclude that apple can make lots of profit margins on this cost and currently its gross profit margins are about 70 percent which at the moment are the highest in the smartphone industry.

This is the major reason behind the profitability of the company but this strength is slowly being taken away from the leading fruit company since it is difficult to keep up with the same margins when the costs of materials are skyrocketing. But this hasn’t caused drastic changes for apple, probably because of their smart costing strategies and according to the report, the iPhone 6 costs Apple only about $5 more than last year's iPhone 5Smodel.

However, it has been deduced that the maximum margins can be generated from the 5.5 inch version of the iPhone 6 which cost only about $16 more to make but sells at retail for $100 more than the 4.7-inch iPhone 6.

source: cnet

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The Author

<a href="/latest_stories/all/all/32" rel="author">Ahmed Humayun</a>
Ahmed Humayun is a technology journalist bringing you the hottest tech stories of the day.




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