Your $800 iPhone 8 Plus has $290 worth of components in it – CNET

ihs-markit-iphone-8-plus-exploded-teardown
IHS Markit

The analytics company IHS Markit on Tuesday issued its annual teardown of iPhone production costs, and if the estimate is correct what impresses me most is that the iPhone 8 Plus — with 32GB more memory, a more powerful processor, wireless charging and a slightly improved camera — only costs about $17.80 more to make.

ihs-markit-iphone-8-plus-costs

IHS Markit’s iPhone 8 Plus cost breakdown. (Click to see at full size.)

IHS Markit

While you might see (or emit) gasps of outrage at the thought that over half the price of the phone isn’t… stuff… it actually makes sense given what I suspect is Apple’s huge cost overhead of intangibles. (A fancy new HQ, for a start.) 

Plus, as long as the iPhone retains its tech je ne sais quois, you’ll be paying a zeitgeist premium for it.

Another interesting note from the company’s report is that it estimates the cost of manufacturing has increased by about $0.60; given the addition of the back glass, wireless charging circuitry and so on, that’s unsurprising.

Leave a Reply

Your email address will not be published. Required fields are marked *