Tech

Here’s How Much It Cost to Built an iPhone 8 & How Much Apple Makes

Venkataraman Gunasellan

2017-09-29 , 3:18 pm

All those who have gotten your iPhone 8 and 8 plus, congratulations!

Hopefully, you have not dropped it (it will happen eventually: it is a rite of passage).

So the iPhone 8 plus cost S$1,308 (64GB) AND S$1,548 (256GB).

You could use that money to buy a ticket to London or a 5-day trip to Bali at some luxurious resort.

Ever wondered how much is it to make these smartphones?

I mean the price keeps getting higher and higher for every new phone but the USB cable keeps dying faster and faster.

Before we start, the values mentioned below are in U.S. currency.

According to an article by Asiaone, the bill of materials (BOM) aka the cost of manufacturing for iPhone 8 plus (64 GB) is $288.08.

Still with me?

Good.

An iPhone 8 plus (64GB) cost $799 .

So the difference between the cost price and selling price is $510.92!

Holy shit.

Let me convert it to sing dollars (adding more fuel to your fire)—S$694.03

Senior Director of cost benchmarking services for IHS Markit mentioned that the higher cost is the result of slower annual component cost erosion tied in with additional features.

Erosion… not soil erosion ah. In this sense, it means there is a negative impact on profits, sales, and et cetera.

So to combat it, they increase the cost of the selling price.

New features also attribute to the rise of BOM such as the wireless charging.

So now you know how much Apple is making.

But then again, let’s all be objective for a while (especially Android fanboys): the cost of any product is much higher than its manufacturing cost due to the supply chain involved.

It’s all business: after all, do you know that the can of soft drink you’ve got on your table now could cost less than five cents to manufacture? And you could have bought it at more than $1.50.

So, why target iPhone? Quoting my colleague’s wise words, “Because iPhone leh.”

Is this going to stop me from buying iPhone X?

Every time an Android user talks about how their phones are superior to apple’s, just remember their selfies look pixelated.

It doesn’t matter if Apple makes a lot of money because iPhone leh.

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This article was first published on goodyfeed.com

Here’s How Much It Cost to Built an iPhone 8 & How Much Apple Makes

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