It is known for a while that iPhones are overpriced and nothing has changed with new models. With the release of new models, nothing has changed. In fact, the new iPhone 8 and iPhone 8 Plus are even more expensive, starting at $699 and $799, respectively. For comparison, the base iPhone 7 model was priced at $649, while the iPhone 7 Plus was $769.
According to a research agency IHS, the production costs of new models have slightly increased. The iPhone 8 with 64 GB of storage costs Apple an estimated $247.51 in raw materials, up from $237.94, while iPhone 8 Plus costs an estimated $288.08, up from $270.88.
It will be interesting to see how much the iPhone X costs, since it starts at $999.
The higher total BOM cost for the iPhone 8 Plus can’t be tied to a single area or feature. The higher cost is the result of slower annual component cost erosion tied in with additional features. From a teardown perspective, the biggest cost adders would be the increased NAND flash memory content and new wireless charging components, said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit.
Source: NPU
