IHS Markit published its latest analysis on the production cost of the iPhone 8 and the iPhone 8 Plus, announced by Apple earlier this month. The report shows estimates the total cost of the components at respectively $247.51 and $288.08
According to analysts, the price of the iPhone 8 Plus 64 GB is $295.44 after the actual process of production and assembly. This is $17.78 higher than the iPhone 7 Plus.
The reason for the higher price is, as IHS Markit puts it, “a result of slower annual component cost erosion tied in with additional features”. The extra 32 GB of storage and the new wireless charging components push the costs higher.
Looking at a breakdown of the item’s prices, the display is currently the most expensive part. The 5.5” screen is $52.50, while the chassis along with the actual Gorilla Glass and the connectors come out at $50.95. Then we have the camera setup for $32.50 and the NAND memory, developed by SanDisk for $31.20. The new A11 Bionic chipset costs $27.50.
Sadly its not as easy as just the chip, one thing apple has, and I take my hat off to that, is optimization, just like consoles their hardware is hella optimized.
What margins? lol Samsung sells a bazillion more phones than apple yet they make less money, its that simple, apple takes I think like 60 or 70% of total smartphone revenue yet sells way way less phones, it can be explain just by one thing, they are ...
If only we could "purchase" the A11 Bionic chipset for $27.50 and "implant" it into our Android flagship phone!!! :P