Apple iPhone costly to make: IHS Markit

Business

LOS Angeles: Apple Inc is spending more to manufacture its iPhone 7 smartphone than predecessor iPhone 6S due to features such as a bigger battery and larger storage capacity, according to a teardown by IHS Markit Ltd.
Including US$5 (K15) in basic manufacturing costs, total cost to manufacture the iPhone 7 mobile rises to US$224.80 (K699), US$36.89 (K115) higher than the business research provider’s estimates for the iPhone 6S.
The company unveiled the iPhone 7 with high-resolution cameras and no headphone jack at its annual launch on September 7.
IHS Markit said on Tuesday the iPhone 7’s Bill Of Materials, 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.
– Reuters

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