OMG! The Manufacturing Cost Of An iPhone 7 Is Rs 15,000


New Delhi:  Apple iPhone 7 is still a couple of weeks away for most Indians. However, that hasn’t prevented at least some people from bringing in the devices from other markets where the phone has been successfully launched. Every time Apple Inc launches a new model, millions queue up to get the exact same phone with the exact same features.

Anyway, the concern here is not about the craziness of people behind buying an iPhone, but about the cost of manufacturing.

According to a report by HIS Markit Ltd., Apple Inc is spending more to manufacture iPhone 7 than it did for the iPhone 6S. But it’s the buyers who are having to pay for it.

Apart from the basic cost that goes into making this phone, an additional $5 has increased in the basic manufacturing cost.

The total cost to produce an iPhone has increased to $224.80 (approx Rs 15,000), $36.89 higher than the iPhone 6S. The price of the phone on sale however is Rs 60,000! That’s nearly four times higher!

 “Phone 7’s Bill Of Materials (BOM), a financial estimate of the raw materials used, was “in line” with flagship smartphones made by rival Samsung Electronics but Apple ekes out better margins,” said Andrew Rassweiler, senior director of cost benchmarking services at IHS Markit.

The details further reported that though Apple acquires all the raw material at the same cost as Samsung does, it is somehow better at fetching marginal benefits.

The study is yet to perform a teardown analysis on the larger iPhone 7. Apple launched iPhone 7 32GB at a whopping cost of $ 649 (priced at Rs 60,000 in India) and has no headphone jack.