iPhone 8 Plus Production Cost Revealed: Much Lower Than Its Retail Price


iPhone 8 Plus Production Cost Revealed Much Lower Than Its Retail Price

Earlier this month, Apple announced two of its flagship smartphones,Ā iPhone 8 Plus and iPhone 8. A teardown of these devices byĀ IHS Markit reveals that the Bill of Materials (BoM) cost for iPhone 8 isĀ $247.51 while it tookĀ $288.08 to produce the iPhone 8 Plus. The production cost of iPhone 8 Plus is higher than any prior variants of Apple smartphones.Ā The starting retail cost of iPhone 8 is $699, which is $50 more than the iPhone 7.

Till date,Ā iPhone 8 Plus remains Apple’sĀ most expensive smartphones to produce.Ā IHS Markit said that the reason for the high price is ā€œa result of slower annual component cost erosion tied in with additional featuresā€. Recall that this device sports an extra 32 GB of storageĀ and additional wireless charging components.Ā However, analysts believe that the price rise will plausibly help toĀ sustain a good margin between Apple devices.

iPhone 8 Plus Production Cost Revealed: Much Lower Than Its Retail Price

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Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit, said

“The higher total BOM cost for the iPhone 8 Plus can’t be tied to a single area or feature. The higher cost is the result of slower annual component cost erosion tied in with additional features”

From the detailed breakdown of this device, the most expensive part is the display. The screen costĀ $52.50 while the associated chassis and connectors requireĀ $50.95. The display is followed by theĀ camera setup which cost $32.50. TheĀ NAND memory and itsĀ A11 Bionic chipset costĀ $31.20 and $27.50 respectively.

IHS Markit, a world leader in critical information, analytics and solutionsĀ has not yet done a teardown on the iPhone X, which costs $999. However, it is quite certain that its BoM will surpass iPhone 8 Plus when you consider its superior OLED screen and other advanced features such as facial recognition.

Previous Apple iOS 11.0.1 update is now available for the iPhone and iPad
Next iPhone X gets certified by TENAA, comes with 2716 mAh battery

4 Comments

  1. heynow2111
    September 27, 2017

    Software is a thing.

    • Sansa
      September 27, 2017

      Indeed it is, a phone is so much more than, metal, plastic, glass and silicone.

  2. heynow2111
    September 27, 2017

    Software is a thing.

    • Sansa
      September 27, 2017

      Indeed it is, a phone is so much more than, metal, plastic, glass and silicone.