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

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

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