iPhone 6 Component Costs Estimated to Begin at $200, Samsung Supplying Some A8 Chips - MacRumors
Skip to Content

iPhone 6 Component Costs Estimated to Begin at $200, Samsung Supplying Some A8 Chips

iphone_6_6_plus_compAs it routinely does for new devices, IHS iSuppli has taken apart the iPhone 6 and iPhone 6 Plus in an effort to estimate Apple's costs for the components included in the new devices, sharing the results with Re/code. According to IHS iSuppli's teardowns, parts and labor costs for the iPhone 6 are estimated to begin at $200 for the 16 GB iPhone 6 model, giving Apple a roughly 69 percent gross profit margin on the devices.

That number of course does not take into account an array of other costs, from research and development to software to marketing and distribution, but it does offer an interesting glimpse at what goes into an iPhone.

The margins are in line with more recent iPhone models but higher than the earliest ones. The gross margin on the iPhone 5, released in 2012, and the iPhone 5s, released last year, were about 69 percent, teardown studies at the time of their release showed. On the lower-priced iPhone 5c, also released in 2012, the gross margin was closer to 68 percent. By comparison, the gross margin on the very first iPhone, released in 2007, was closer to 55 percent.

Apple does earn slightly higher margins on higher-capacity iPhone 6 models, as the 128 GB of storage is estimated to cost $47 more than the base 16 GB storage while the device retails for $200 more.

The iPhone 6 Plus is also a higher-margin item for Apple, with IHS iSuppli estimating the device costs just $16 more to produce than the corresponding iPhone 6 models, with roughly half of that difference coming from the display and the remainder presumably related to the rear camera module with optical image stabilization, a larger battery, and other minor differences.

Another interesting observation from IHS iSuppli is that Samsung does indeed remain involved in production of the main A-series processor for the iPhone. Early teardowns had shown the iPhone 6 and 6 Plus using A8 chips manufactured by TSMC for the first time, but IHS iSuppli says TSMC is providing 60 percent of A8 chips while Samsung is handling the remaining 40 percent.

Related Forum: iPhone

Popular Stories

iOS 27 Next to iPhone

Here's When iOS 27 Rolls Out Today in Every Time Zone [Update: It's Out]

Sunday September 13, 2026 3:00 am PDT by
Update 10:04 a.m.: iOS 27 is rolling out now, though it may take a bit for all users to see it, so keep checking! Apple is about to release iOS 27, which will finally deliver more advanced Siri AI capabilities as well as a variety of other refinements, improvements, and new features to iPhones. It's Apple's biggest software update of the year, and Apple announced at Wednesday's iPhone event...
iOS 27 Icon iPhone

iOS 27 Available Today With These 8 New Features

Monday September 14, 2026 9:00 am PDT by
Update: Apple has released iOS 27. During its iPhone 18 Pro and iPhone Duo event last week, Apple announced that iOS 27 will be released widely on Monday, September 14. iOS 27 should be available around 10 a.m. Pacific Time / 1 p.m. Eastern Time today via the Settings app, under General → Software Update. Below, we have highlighted eight new features and changes coming with iOS...
deep black iphone 18 pro

Apple Says iPhone 18 Pro Max Sold in U.S. Differs in One Way

Saturday September 12, 2026 3:27 pm PDT by
As noted by Nicolas Lellouche, who writes for the French tech website Numerama, Apple has updated its tech specs pages for the iPhone 18 Pro and iPhone 18 Pro Max to clarify which models are equipped with its new C2 cellular modem and where. Apple now says the iPhone 18 Pro has a C2 modem worldwide, while the iPhone 18 Pro Max uses the chip in every country except for the U.S. According...

Top Rated Comments

nagromme Avatar
156 months ago
Yes, because a "ziploc bag of parts" (some manufactured by means ONLY Apple has) is Apple's full cost.

There is no cost to transport those parts. No cost to assemble them. No cost to provide support for them. No cost to market and package them. No cost to transport and store them around the world. No R&D cost to develop the device in the first place. No cost to develop the OS or the apps. No cost for bandwidth. No cost for the cloud services behind it all. No insurance, no taxes, no patent fees. JUST a bag of parts.

...The cost of those parts are what they are to recover R&D expenses.

Thus, the only aspect of the iPhone evaluation that isn't being correctly assumed is ergonomics, advertising and software. As none of those things can be quantified. ...
"Correctly assumed" is wrong: iSuppli does NOT know Apple's R&D details. They don't know much--they guess as best they can at certain elements, because it's free publicity for them.
Score: 15 Votes (Like | Disagree)
156 months ago
Completely pointless test, as it's doesn't capture R&D costs.

You might as well price up raw glass, metal and plastic...
Score: 10 Votes (Like | Disagree)
156 months ago
Samsung still making the processors for their biggest consumer rival, the likes of which they mock commercially.

Makes it easy to believe in an oligarchical world where competition is an illusion :O

Be very afraid.

:D

Remember, all of these large corporations care for one thing and one thing only... money.

The rest is an illusion perpetuated by their own exclusive fan base.

Apple fans are convinced that Jobs and now Cook really care about them as people. And through that, want to provide their customers a personalized welcoming experience. The reality is, that's all imaginary. All they want is to turn huge profits, make their stock holders happy and keep their jobs for as long as possible.

*REALITY
Score: 8 Votes (Like | Disagree)
AppleScruff1 Avatar
156 months ago
At least this article addresses the fact that it doesn't cost $200 to make an iPhone 6 - millions went into R&D and testing and such.
How many millions is key. If it was $150 million, that would add a dollar to the cost of the iPhone since they will sell somewhere around 150 million a year. If it is $1.5 billion, it would add $10 per phone.
Score: 7 Votes (Like | Disagree)
156 months ago
Don't put too much stock in the "RD" argument.

Remember, when they make these calculations, they're evaluating cost of individual components.

The cost of those parts are what they are to recover R&D expenses.

Thus, the only aspect of the iPhone evaluation that isn't being correctly assumed is ergonomics, advertising and software. As none of those things can be quantified.

That said, over the sale of all phones, given that much of what is now was taken from research prior, I wouldn't imagine the cost to produce being more than an additional $15 or so.

Bottom line, Apple could sell these devices for a LOT less. But they know their customer base well... they'll buy and pay for just about anything with the Apple logo on it. (that's blunt truth folks)
Score: 7 Votes (Like | Disagree)
0815 Avatar
156 months ago
and this does not even include the R&D that goes into those devices ....
Score: 7 Votes (Like | Disagree)