How much does it really cost Apple to make an iPhone 7? Before you read on, let's mention that Apple CEO Tim Cook once said that these estimates are never "accurate" and that they are usually "very different from reality."
The fact is, however, that the iPhone 7 is more expensive to manufacture than the previous version 6.
The total manufacturing cost, according to IHS Markit, is $219.80. If you now factor in labor costs, estimated at $5 per phone, and the total capacity of 32GB for the base iPhone 7 model, the price rises to $224.80.
The company claims that there is an increase of $36.89 per unit, compared to last year's base model iPhone 6S, which cost $187.91 to manufacture.
Let's now look at the market prices:
With the base model of the device costing $649, this gives Apple a profit of $424 for each device sold, a markup of 189 percent.
All told, the profit per device is likely much lower than the $424 estimate, and according to Cook, those estimates are inaccurate.
Of course, no matter how inaccurate they are, they always give an idea..
