Owning an iPhone is a status symbol for many Indians, thanks to its eye-watering price tag. Such is the craze of the gadget that people take loans, buy it on EMIs, and have even tried to sell their kidneys to buy the unnecessarily over-priced product. But did you know that the actual cost of making the product is not even one-third of its selling price?
This Is The Actual Cost Of Making An iPhone 6 Plus And It's Going To Make You Really Livid!
#1
Sounds unbelievable, but it's true. IHS Technology, global researchers and analysts of technology, did a study on the actual cost of manufacturing an iPhone 6 Plus. What they found will make you feel cheated. Might even make you shed a tear.
The large-screen version of Apple's latest phone retails for more than three times what it costs to produce, according to a teardown analysis by research firm IHS.
Apple spends $236 to make each iPhone 6s Plus device, which it sells for over three times that value at $749a 217.4 percent markup that highlights the tech giant's ability to dominate the premium market while other smartphone makers struggle.
The bill for materials for a 16-gigabyte iPhone 6s Plus comes in at $231.50, which rises to $236 once manufacturing costs are added, according to IHS. The iPhone 6s Plus costs just $16 more to make than the last year's model, with Apple benefiting from cheaper components to boost margins.
#2
Apple apparently sells each model of iPhone 6 Plus at an eye-popping 300% profit!
#3
Which means, the cheapest model of iPhone 6 Plus that is sold at $758 (approx.) actually costs only $252 to make!
#4
The materials used in making a 16 GB iPhone 6 Plus actually costs only $238. If you include the manufacturing costs, it comes to $252
#5
The most expensive part of the phone happens to be the screen which now comes with the new 3D-touch technology. The cost of one screen - $53
#6
Next comes the camera. The cost of manufacturing both front and the back camera (8 megapixels and 12 megapixels respectively) is merely $22
There's a reason why Apple does not offer expandable memory. And this is where they actually make the most of their device - the cost of adding 1 gigabyte of memory on the phone is as low as $0.37
#7
The cost of 16GB memory in an iPhone 6 Plus is $6 while the cost of 64 gigs of memory is $24. So ideally, the difference between a 16 GB iPhone 6 Plus and a 64 GB iPhone 6 Plus isn't more than $18 but users end up shelling out around $104 more for the 64 GB model.
But while Apple is simply doing business, what's really disheartening to know is that the workers who take about 24 hours to manufacture an iPhone make a negligible amount of $1.8 per hour for their labour.
#8
Even if you add all of Apple's expenses including R&D, labour, shipping, licensing, taxes, marketing and other territory costs, the margin between the cost price and the selling price still remains astronomical.
#9
We know, Apple's brand value has its own price but it surely can't be 300%!
*Curls up in the corner of the bed looking at his iPhone. Tries not to cry. Bursts into tears.*
