This Much It Costs To Make an iPhone 7

iPhone 7

iPhone 7 is more expensive to manufacture than last year’s 6s and this is the fact. They pulled out headphone jack but it is still expensive to build.

The total cost of the build, according to data from IHS Markit, adds up to $219.80. Once you factor in labor costs, estimated at $5 per phone, the total build runs $224.80 for the base model, 32GB iPhone 7. The company claims that this is an increase of $36.89 per unit, as opposed to the $187.91 iPhone 6s base model from last year.

With the base model phone running $649, this gives Apple an expected profit of $424 for each device sold, a 189 percent markup. This doesn’t factor in outside costs, like research and development, marketing or events.

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