Apple's generosity in its new iPhone SE device seems to have gone unnoticed by many. The iPhone SE is not leaving the shelves as the company might have expected, but it seems that Apple has found a way to get the most out of the device.
By reusing a number of parts that existed from older iPhone models, Apple has managed to significantly reduce the price of the iPhone SE (especially if you don't buy it from Greece). This is the finding of IHS after dismantling Apple's new iPhone SE.
According to IHS, a 16GB iPhone SE that Apple sells for $399 costs the company $160. That means the company makes $239 per device sold.
If customers now opt for the 64GB version, which retails for $499, Apple earns an additional $89, for a total of $328.
Not bad for an iPhone that's made up mostly of older parts.
“iPhone SE represents a fusion of three generations of iPhone – the iPhone 5s, iPhone 6 and iPhone 6s – into something completely new,” said Andrew Rassweiler, senior director of cost benchmarking services at IHS.
“Despite its physical resemblance to the iPhone 5S, the resulting product is vastly superior. In fact, the only significant changes the iPhone SE has over the iPhone 6s are its smaller size and lower screen resolution.”
What helps Apple make so much money is that component prices are constantly falling. When Apple released the iPhone 5S, the 4-inch screen cost Apple over $40, while the same screen on the iPhone SE costs about $20.
