iPhone 6S production costs increase by around 10%

Apple has continued with its yearly tradition to top their previous year’s iPhone sales. The company is able to reel in a ton of profit sue to their great products that effortlessly combines hardware and software into one neat little package. This device does come at a premium though, PocketNow has dived into the finances of the new iPhone 6S range to find out just how much Apple takes home.
Part one of the (unofficial) answer? $404 (around R 5600) for a 16GB model iPhone 6s, according to a quick Teardown.com assessment. The outlet actually dissected a 64GB model, but normalized the NAND flash memory costs down to 16GB. That comes to a $245 (around R 3400) bill of materials and labor (these are numbers related to the US – the iPhone 6S will cost more than R9000 in SA due to taxes, import etc.)
To compare this to last year’s iPhone 6, the same team estimated that it cost $228.50 (around R 3150) to produce, which indicates an increase of around 10% in production costs. An IHS report estimated that the iPhone 5S and iPhone 5 production costs came to $199 ( +- R 2750) and $197 (+- R 2700), respectively.
The largest contributor to the 10% increase from the iPhone 6 to iPhone 6S is the jump from 1GB to 2GB memory, an estimated $11.50 (R 160) extra.
Teardown.com does not have an estimate on its site for production costs of the iPhone 6s Plus as of this post. IHS did not publicly disclose an estimate for the iPhone 6S, either. The assumptions are quite large in this type of guesswork because it‘s guesswork. These figures are only an indication of what goes on behind the scenes.
Source: PocketNow
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