Apple might be catering to a wider market with the new iPhone SE, but they will still make a pretty penny from selling it.
The iPhone SE was recently unveiled and customers in the US have started raking them off of the shelves. The “mid-range” model priced at a lower $399 USD aims to give Apple a foothold in the mid-range smartphone industry. But like any company, Apple intends to make some money with this device and boy are they coining it. Read: Watch: Summary of yesterday‘s Apple iPhone SE event
A peek inside the guts of an iPhone SE has revealed that the $399 USD smartphone costs about $160 USD to make, as well as shares many parts with its predecessors. Consumer analytics firm IHS took apart the device and appraised the cost of its parts, revealing in a news release today that it estimates the 16GB model of the SE to cost approximately $156.20 USD, rounding up to $160 USD when including manufacturing costs.
Most of the saving comes from using elements from existing models. The SE utilises almost the exact same structure as the iPhone 5S, an identical secondary camera and LTE reception component as the iPhone 6, and A9 processor and primary camera currently outfitted by the iPhone 6S. Read: iPhone SE teardown reveals some impressive specs
This move by Apple enabled them to push the iPhone SE to the market at a more competitive price. The question is however whether they might have inflated the margin too much? We will keep an eye on sales over the next couple of months.
Source: TechRadar Follow Jaco on Twitter:@Jaco_vdWalt