However, have you ever paid any thought on how much it would cost to make an iPhone? Renowned financial services company, IHS Markit has made a breakdown of the iPhone 8 Plus’ bill of material (BOM). According to their report, the iPhone 8 Plus carries a BOM cost of $288.08, which is higher than any previous iPhones. Apple spends around $7.36 in basic manufacturing which makes the BOM cost of the iPhone 8 Plus rise to $295.44. This is $17.78 higher than that of the iPhone 7 Plus. IHS Markit is also running a teardown on the iPhone 8 bill of materials and they have estimated the cost at $247.51, which is $9.57 higher than the iPhone 7 at the time of release. “The higher total BOM cost for the iPhone 8 Plus can’t be tied to a single area or feature. The higher cost is the result of slower annual component cost erosion tied in with additional features,” said Andrew Rassweiler, senior director of cost benchmarking services, IHS Markit. Rassweiler added, “From a teardown perspective, the biggest cost adders would be the increased NAND flash memory content and new wireless charging components.”
Money’s Worth
As you may know by now – the iPhone 8 starts at $699, which is $50 higher than the iPhone 7 at the time of its launch. The iPhone 8 Plus is priced at $799, which is $30 higher than that of the iPhone 7 Plus. Alongside increasing the market price, Apple has surely amped its game as the iPhone 8 gets a 12-megapixel camera while the iPhone 8 Plus packs dual 12-megapixel rear cameras with a F/1.8 wide lens and a F/2.8 telephoto lens. Combined with the new Apple-designed ISP, the cameras offer a better image quality and digitally reduced noise levels. There are more such awesome features that the latest two iPhones pack. Both iPhone 8 and 8 Plus have started shipping on September 22. The above article may contain affiliate links which help support Guiding Tech. However, it does not affect our editorial integrity. The content remains unbiased and authentic.
