The new Apple iPhone 8 Plus is the most talked about phone in the smartphone market right now.
While Apple customers are still trying to decide whether to buy the iPhone 8/8 plus now or wait until November 3rd for the sales of iPhone X to start, It might interest you to know what it actually cost Apple to put together one single unit of the device and then; don’t get shocked when you compare it to how much it’s been sold right now.
IHS Markit, a world-class analytic company after their annual teardown on iPhone production cost stated that the Bill Of Manufacture cost for the device which comes with 64GB of NAND flash memory costs only $288.08 to make.
In comparison, the cost to make iPhone 8 Plus is $9.57 higher than the iPhone 7 Plus as of the time of its release.
Meanwhile, the Bill of Manufacture cost will make you want to jump out of your skin after finding out that the $288.08 is not even up to half the money you will be paying for the phone.
One would have thought, with the features iPhone comes with that the BOM would have been higher than $288. Am I the only person thinking that the profit margin Apple wanted for this phone is quit too much?
While this explains the reason why Apple’s iPhones have always been so expensive more than any other phone on planet earth. We understand Apple still needs to cover enough profit so as to remain the best in the smartphone industry and maybe cover what it took them to get their new fancy HQ up and running.
Let’s move away from iPhone 8 Plus a little bit.
IHS Markit, also stated that the iPhone 8’s BOM is 247.51, and it’s $9.57 higher than the iPhone 7 as of the time of its release.
IHS claimed that the higher cost of the BOM cost for the iPhone 8 plus can be tied to the slower annual component cost erosion tied to its additional features which include the increased NAND flash memory content, the new wireless charging components and the back glass.