Apple makes $513 on sale of every iPhone 6s Plus

Around USD 236 are spent by apple for manufacturing each iPhone 6S Plus smartphone. Though manufactured at USD 236, each device sells at three times this price i.e., at USD 749. This means it gets a 217.4 percent markup highlighting its dominance in the smartphone market where other smartphone brands struggle. According to a tear down analysis conducted by IHS – a research firm this large screen version of the latest iPhone sells for 3 times more than what its costs to produce. The materials bill for this 16 GB iPhone amounts to USD 231.50 which becomes USD 236 after addition of the manufacturing costs according to the reports for IHS. The additional cost for making iPhone 6S Plus is just USD 16 more than the earlier iPhone, apple making profit over cheaper components. Some of the biggest additions to the iPhone 6S Plus are upgraded cameras and 3D touch. The new 3D touch feature uses the new Force touch technology allowing users to select options depending on how hard they press the screen.

According to IHS, the cost of the screen alone is USD 52.50 which makes it the most expensive component of this iPhone. Further apple is also providing improved camera in this model upgraded from 8 megapixels to 12 megapixels. The rear camera has also been upgraded as well. The cost of both the cameras is USD 22.50 per device. IHS also noticed that Apple greatly benefited by decreasing the component’s cost. It costs only USD 5.50 per unit of 16 GB but it was noted that the difference between sale price of 16 GB iPhone and 64 GB iPhone varied by great margin.

Andrew rassweiler, Senior direct of IHS Technology said, “Flash is now so cheap it’s almost irrelevant, but Apple monetizes this difference with consumers, to the tune of USD 100 for each additional step-up in memory capacity. For example, a 64 GB iPhone now costs Apple about USD 17 more to make than a 16 GB iPhone, but Apple charges iPhone buyers USD 100 more for the increased memory. This is part of Apple’s ongoing strategy to improve profits by selling a product mix that is heavier in the higher-end iPhones.” After the launch, around 13 million units of iPhone 6S and 6S Plus were sold in just 3 days breaking Apple’s own record of first weekend sales.