The iPhone 7 release has taken the world by storm with people lining up outside stores to get their hands on it. Reports have indicated that it could be the most expensive iPhone ever built in the history of iPhones.
iPhone 7 and 7 Plus have reached new heights in the smartphone world. The two new iPhone variants definitely has a lot of great features and specs. However, these are also the most expensive iPhones ever made. IHS Markit sent out a press release on Sept. 20.
Also Read: iPhone 7 Problem: Users Experiencing Whining Sound From The Back, Apple To Replace Defective Units
An iPhone 7 with a 32GB built-in storage is said to carry $219.80 of material with an $5 for manufacturing costs. This provides a total of $224.80 total of material. However, this is not a number to go by in terms of costs. According to IHS Markit?s senior director of cost benchmarking services Andrew Rassweiler, ?Total BOM [bill of material] costs for the iPhone 7 are more in line with what we have seen in teardowns of recent flagship phones from Apple?s main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses.All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.?
What makes it expensive?
IHS Markit?s teardown show that the same shape design with no jack has allowed the iPhone 7 to pack a bigger battery and provide a place for a waterproof microphone. Furthermore, the increased base storage of 32GB from the previous 16GB means that Apple has upgraded, which certainly costs more in material. The radio frequency, or RF, paths have also been eliminated from the back portion of the phone like in the previous iPhone 6 and 6s. These have been limited to two instead of the previous four used and moved at the very ends of the phone to provide a better finish. According to Wayne Lam, the principal analyst of smartphone electronics in IHS Markit, ?This [two RF paths] design limitation may force Apple to go back to an all-glass design again so that they can fit in 4x4MIMO LTE antennas and more features like wireless charging in the next iPhone iteration.?
Beyond these features, the iPhone 7 is now also officially water resistant. The jet black variant with a 128GB or 256GB built-in storage mean changing the RF paths. Moreover, the upgraded antenna speaker design is certainly expensive. Coupled with the a new and amazing camera feature, optical image stabilization (OIS), for better low light performance?has?increased the production cost.
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