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Apple is known for its huge gross margin profits for each Apple product it sells, well this year’s iPhone 6S is going to be no different if we are to believe a report by Bank of America Merrill Lynch. Apple is estimated to make over $500 for each iPhone 6S it sells - that’s staggering!
Bank of America Merrill Lynch estimates come via pricing the components used for the iPhone 6S. It breaks it down and puts the cost of making an iPhone 6S 64 GB model at $234 which retails for $749 - a cool revenue of $500 per iPhone.
Now before you jump into bashing Apple for making products super expensive. This estimated ‘profit’ does not count the manufacturing, distributing and other miscellaneous costs which might incur. So the actual profit is going to be slightly lower than the $500+ which we are thinking Apple makes.
Here are the component costs for iPhone 6S parts:
- $127 for semi conductor pieces.
- $36 for cellular radios.
- $25 for A9 64-bit processor.
- $22 for sensors including the Touch ID.
- $20 for 64 GB flash memory.
- $73 for screen, camera, battery.
- $33 for case.
Currently the estimated cost for making a single iPhone 6S is more than previous iPhones but the cost will come down as Apple starts pumping more iPhones.
Well the $500+ revenue does sound sweet to any company let alone just a tech company.
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