iPhone 6 Costs Just $200 To Build; Sells At $649: IHS

iPhone 6 Costs Just $200 To Build; Sells At $649: IHS
JESHOOTS / Pixabay

Apple Inc. (NASDAQ:AAPL)’s iPhone 6 and 6 Plus sell at premium prices, and they will help Apple maintain its high profit margin. But did you know that the new iPhones cost less than Samsung’s Galaxy S5 to build? Research firm IHS iSuppli has taken apart the new iPhones to figure out costs of components used in new devices.

iPhone 6 base model costs $5 more than 5S

IHS told Re/Code that the base model of 4.7-inch iPhone 6 with 16GB storage costs only $5 more than the iPhone 5S. The 5S was initially priced at $649 without a contract, which is what the iPhone 6 sells for now. The base iPhone 6 model costs $200.10 to build. That means Apple has a whopping 69% gross margin on 16GB iPhone 6.

Massif Capital’s Top Short Bets In The Real Asset Space [Exclisuve]

Screenshot 2022 08 10 18.57.51 1Since its founding by Will Thomson and Chip Russell in June 2016, the Massif Capital Real Asset Strategy has outperformed all of its real asset benchmarks. Since its inception, the long/short equity fund has returned 9% per annum net, compared to 6% for the Bloomberg Commodity Index, 3% for the 3 MSCI USA Infrastructure index Read More