“Apple’s newest iPhone costs less than previous models to make, but it could also generate the smallest amount of profit per phone, according to estimates by the research firm IHS,” Joon Ian Wong writes for Quartz.
“The researchers took apart the iPhone SE, which was launched Mar. 21, and found that the costs of materials and manufacturing came up to $160 for iPhone SE with 16GB of storage, the smallest capacity available,” Wong writes. “It retails for $399. That’s a difference of $239. The iPhone 6, by contrast, costs $200.10 to make and sold for $649 at launch. That’s a difference of $448.90.”
“Although the absolute number of dollars Apple could stand to earn from selling an iPhone SE is lower than for its other models, Apple is betting that many buyers will get the more expensive 64GB model, not the entry-level 16GB one,” Wong writes. “That adds $89 in extra potential profit (or a 37% increase over the 16GB model) to Apple’s coffers per phone, says IHS.”
Read more in the full article here.
MacDailyNews Take: Any fragmandroid phone peddler would kill for that type of profit. Actually, they’d kill for any profit whatsoever.
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