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Price of the iPhone is 4 Times its Production Unit Cost

The iPhone is one of the most coveted models by users when purchasing a mobile phone.

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The iPhone is one of the most coveted models by users when purchasing a mobile phone. Sales of mobile devices represent half of Apple’s revenue, which approximately earns 23.3 billion euros in profit every year from the sale of its devices. However, it is important to highlight the gap between the manufacturing price of mobile phones and the final cost of sale.

Apple’s earnings have fallen 11.8% in the second quarter of the year.

Apple has published this week the accounts of the second quarter of the year and in this period its revenues were 48,250 million euros. However, the sale of iPhone phones has decreased by 11.8% compared to the figures a year ago.

However, iPhone continues to be Apple’s main line of business, above tablets, computers, laptops and other services. It is a successful product that throughout history has always given much to talk about. Given this, this week a study prepared by the technology consultancy IHS Markit has revealed the price of manufacturing an iPhone, which can be compared to its real price.

According to the report, the cost of the iPhone XS Max components would be as follows:

-Battery: $ 6.5.

-Wifi: 7 dollars.

-Memory: $ 40.

-Interface with the user: $ 9.7.

-Screen: 120 dollars.

  • Radio frequency amplifier: $ 15.5.

-Camera: 51 dollars.

-Integrated circuits: 47 dollars.

-Mechanical components: $ 71.5.

-Other: $ 10.9.

-Battery management: $ 12.6.

Adding all the figures, the total price of the phone would be $ 392.5. Taking into account that the retail price of the device ranges between 1,000 and 1,200 dollars, depending on the configuration chosen by the user, it can be said that it costs up to four times more than what it is worth manufacturing.

Of course, it is important to keep in mind that these prices only cover electronic components and expenses such as assembly, product development, logistics and marketing are not being considered.

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