Apple recently announced iPhone 6s and 6s plus, and these models come with a fancy price tag as usual. iPhone 6s 64GB variant costs $ 749, but do you know the hardware costs of this model?
Bank of America Merrill Lynch has estimated the cost of each parts used in iPhone 6s, and came to a estimated price. They said that Apple will pay around $ 234 for the parts use in iPhone 6s. You must be willing to get the breakdown of the price.
iPhone 6s hardware cost breakdown
Semiconductor Pieces costs the much, that accounts for almost $ 127, it includes $ 36 for Cellular Radios, $ 25 for A9 Chip, $ 22 for sensors (Finger Print, NFC and other sensors), and $ 20 for 64 GB Flash Memory. Display Camera, battery etc. accounts for around $ 73, and $ 33 for some other components including Aluminum case.
$ 234 for the hardware, and there are some other costs as well, like manufacturing and distributions costs. However, these costs are not that much and I don’t think would even reach $ 270. Apple knows well, but they make lots of money for sure.