iPhone component costs are higher than ever before - PC Retail

iPhone component costs are higher than ever before

The rising cost of the iPhone is hitting Apple as well as consumers
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When Apple announced that it was bringing out a £1,000 phone, the world raised an eyebrow. Some corners questioned if the high-end cost would deter buyers and only time will tell. What we know now, is that consumers are not alone in having to fork out more money for the latest devices. Apple is being hit in the pocket as well.

According to research firm IHS Markit the iPhone 8 and 8 Plus – which retail between £649 and £799 – will cost Apple $247.51 and $288.08 respectively in raw materials. That is around $10 more per phone than it cost Apple to produce the 7 and 7 Plus devices.

"The added value went to memory, camera, and processing. That's where we can materially identify where they've improved the overall product, and hence why they can command a higher price for it," Wayne Lam, an analyst at IHS, said.

According to Bloomberg, the most expesive components in the new generation iPhones included the screens and the mechanical enclosures. The new all glass body built around a stronger internal frame has been designed to encompass the new True Tone technology.

Wireless charging has also added $2 to the manufacturing cost while the new A11 bionic chip built inhouse sets Apple back $5 than the company’s previous arrangement with external manufacturers.

The true cost of the iPhone X probably won’t be revealed until it is released in November. Once analysts get their hands on it then they will have a better idea how much the £1,000 phone costs to make. However, these figures are only estimates (albeit from experts) and must be taken with a pinch of salt. Just two years ago, Apple CEO Tim Cook said that cost breakdowns are ‘much different than the reality’. He added: “I’ve never seen one that is anywhere close to being accurate.” 

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