According to a research firm IHS, the manufacturing cost of Apple iPhone SE is just $160. This translates to just Rs 10,700.
Research suggests the US version of an entry-level iPhone SE (16GB) carries a bill of materials (BOM) of $156.20, which rises to $160.00 when manufacturing costs are added.
The retail price of the iPhone SE 16GB model is $399 in the US; that’s more than double.
When it comes to India, the entry level iPhone SE is priced at Rs 39,000 and the 64GB version will be available for Rs 49,000.
That’s almost four times the cost of making an iPhone SE.
Sure the price doesn’t include costs of software research, R&D, marketing, distribution and other taxes and charges. But it will still keep the profits high for Apple.
The costliest component of the iPhone SE is the 4-inch Corning Gorilla Glass display. But surprisingly the BOM cost of $20 is less than half the cost of the same display in the iPhone 5s.
“Pricing is a moving target, and Apple improves its margins on its products over time,” Andrew Rassweiler, senior director of cost benchmarking services at IHS said. “Whatever the margin is on a display or other subsystem today, it will always be better in a year or two, as component costs decline.”
IHS also found an LG Display panel in the iPhone SE during the teardown, but Apple also sources iPhone displays from Japan Display and Sharp.
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