Apple created quite a buzz with the launch of its iPhone 7. As per a teardown report released by IHS Markit, Apple is spending more money to manufacture its latest model than its predecessor iPhone 6S. Priced at Rs 60,000 in India, an entry-level iPhone 7 with 4.7-inch and 32 GB storage costs the company $224.80 (Rs 15,065). While the IHS estimate for iPhone 6s in 2015 was around Rs 13,402 ($36.89).
Apple retails an unsubsidized 32GB iPhone 7 at $649. IHS also added that the iPhone 7’s Bill Of Materials (BOM), a financial estimate of the raw materials used, was “in line” with flagship smartphones made by rival Samsung Electronics but Apple ekes out better margins.
“All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.
While iPhone 7 and its predecessors look similar on the outlook, new display with a better screen resolution, bigger battery and a large internal storage makes the former different from latter. IHS is yet to perform a teardown analysis on iPhone 7.
Yet, in some markets, such as China, interest in the new phone has been muted, as cheaper local brands amp up their design and marketing.