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Apple's iPhone 6s Plus carries an estimated bill of materials of just $236

By Shawn Knight
Sep 30, 2015
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  1. Companies such as Amazon are content to sell hardware at a very slim margin in hopes of making a profit via services. Apple? They demand their money up front on the cost of the hardware and as the recent teardown and cost analysis from IHS Technology confirms, Apple’s latest smartphones carry attractive profit margins.

    The market research firm estimates it costs Apple just $236 to make its new iPhone 6s Plus (16GB model), a smartphone that starts at $749. That’s a solid $513 profit on each sale although its $16 more per device than last year’s model.

    IHS points out that some of the added cost is related to the fact that Apple has taken steps to make the new phones more durable, perhaps to bolster its new financing program. If you recall, Apple switched to stronger 7000 Series aluminum and is using Gorilla Glass 4 to protect the display.

    IHS hasn’t yet had time to conduct a full analysis of the smaller iPhone 6s although preliminary estimates peg its bill of materials to be $211.50.

    As IHS Senior Research Director Andrew Rassweiler highlights, the estimate doesn’t include all costs associated with creating the phone. It doesn’t, for example, factor in the cost of research and development, marketing, warehousing and shipping. Regardless, he added, the analysis provides insight into what’s likely the single biggest cost associated with building the phone (manufacturing) and demonstrates Apple’s priorities.

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  2. VitalyT

    VitalyT Russ-Puss Posts: 3,156   +1,431

    How much did Apple spend to make this outdated product?

    Amidst the closest competing products, like G4 or Note 5, it has the lowest screen DPI, and the thickest bezel. And even with the lowest DPI the battery life is still isn't any better.

    Top hardware? Not so much.
     
    Dibrol likes this.
  3. thorpj

    thorpj TS Enthusiast Posts: 90   +14

    R&D, licensing, there's a whole bunch of costs that aren't included in this. This happens with every iPhone, I don't know why these articles still happen.
     
  4. davislane1

    davislane1 TS Evangelist Posts: 3,565   +2,373

    It's shameless click-bait that satisfies the ever-hungering bellies of disgruntled, oft youthful, money-starved first-worlders who never received a basic business education in spite of attending the best public institutions in the world.

    In short: money.
     
    SNGX1275 and coolazeem like this.
  5. VitalyT

    VitalyT Russ-Puss Posts: 3,156   +1,431

    That's a lot of hatred both ways, guys. I'd vote to ignore and forget. Peace out! :)
     
  6. p51d007

    p51d007 TS Evangelist Posts: 914   +391

    Not just Apple. Samsung, HTC, LG, etc...they all do this. Which is why I jumped off the stupid cycle of overpriced devices a couple years ago. If it is over 350-400, I don't even bother looking at it.
    Bang for your buck is what I'm after, not the most overpriced, overhyped device out there.
    The one I have used for a year and 1/2 is fast, clear screen not one issue. I'm a "typical" user, not a hard core gamer, pixel peeper. PHONE, mp3's camera, web, youtube, email, text.
    You don't have to spend a ton to have a great phone.
     
    Skidmarksdeluxe likes this.
  7. mctommy

    mctommy TS Booster Posts: 190   +30

    Funny that the article starts out with Amazon... did they forget that Amazon and AT&T released the Amazon fire phone at full subsidized price? ie $200 for a year contract which would put it in line with other $650 phones... very slim margins?
     
  8. davislane1

    davislane1 TS Evangelist Posts: 3,565   +2,373

    Sarcasm and ridicule != hate.

    You see, I ain't hatin'. I'm preachin'.

    Now go back to that post and click AMEN, brother.
     
  9. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,519   +2,062

    How many people truly need a high end device? Very few truth be told. They're showcases for the manufacturers abilities and bragging items for buyers.
    Even if Apple charged twice as much than they already do they'd still manage to sell a latrine full of their devices.
     
  10. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,519   +2,062

    Amazon and AT&T aren't Apple. If that abortion of a Fire phone had a half chewed apple logo on it, it would've sold in droves been hailed as a resounding success. It's all about perception.
     
  11. Burty117

    Burty117 TechSpot Chancellor Posts: 2,920   +687

    Disagree, the DPI means nothing. A friend at work has the G4 and the higher DPI just means it doesn't go quite as bright and everything seems to have a yellow tinge to them, We did a side-by-side comparison on a few things, high res pictures and videos and the iPhone looked better in all of them. Once the DPI is above a certain limit the quality of the screen is more important than the resolution.
     
  12. VitalyT

    VitalyT Russ-Puss Posts: 3,156   +1,431

    On 6S Plus it is 1080P, which is ample for everything, but its smaller brother, 6S has way lower DPI, which next to my Note 4 with 1440P looks way worse.

    If you compare the overall quality of the screens from the above mentioned phones, it will look like this (from best to worse):

    1. Note 5
    2. iPhone 6S Plus
    3. Note 4
    4. iPhone 6S
    5. G4

    The regular 6S has too low DPI for the competition, while G4 has issues with the color accuracy / saturation, and especially deep black.
     
  13. mctommy

    mctommy TS Booster Posts: 190   +30

    I don't think you understand what I meant. To say that Amazon was content to sell hardware at very low profit margin is misleading... they were forced to sell it at low profit margin because of how big of a flop that phone was. The initial price for the amazon fire ($200 with 2-year contract) was on par with any of the higher end offerings from Samsung/LG/Apple.
     
  14. Kdnorth1

    Kdnorth1 TS Rookie

    VitaliT, battery size means nothing. My iPhone 6s Plus runs two to three times longer than my Samsung note 4 and Galaxy s5 did. It's all about how you build the phone. Not to mention Apples ability to squeeze more speed out of their phones using half the RAM that those other manufacturers needed. You will never convince me that those other brands are nicer products. I've been on both the android side and the Apple side, even more on the android side, but the phones are honestly slower, more glitchy, and you can feel the quality difference just by holding one. Sorry but despite your opinion that iPhones are 3 years behind, they still seem to overshadow every other phone on the market. Have you ever owned one? Held one and actually used it?
     

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