iPhone 6s Plus Component Costs Estimated to Begin at $236, $16 More Than iPhone 6 Plus

IHS iSuppli has once again taken apart the newest set of iPhones in an attempt to come as close as possible to estimating the actual component cost of the new devices. According to IHS iSuppli's teardown of the iPhone 6s Plus, the bill of materials for a 16 GB version comes to $231.50, with manufacturing costs and other minor items raising the overall price slightly to $236.

ihs_iphone_6s_plus_parts
One of the biggest areas of increased cost is related to 3D Touch, which adds about $10 to the overall component cost of the iPhone 6s Plus when combined with Apple's Taptic Engine used to fuel the new feature. It's these improvements that have boosted the new iPhone 6s Plus to cost around $16 more to manufacture than last year's iPhone 6 Plus, according to IHS Technology senior director of cost benchmarking services, Andrew Rassweiler.

“3D Touch and Apple’s Taptic engine are among the more notable feature upgrades found in this latest round of iPhones,” said Rassweiler. “With each generation the company makes measured, incremental technology improvements to its iPhone line, and this time around those changes are increasing Apple’s per-unit material cost.”

Overall, the most expensive aspect of the new iPhone 6s Plus is its display, with the addition of 3D Touch slightly increasing the component cost to $52.50 this year. Other high-cost components include the iPhone's new 12-megapixel rear camera and 5-megapixel front-facing camera that together are estimated to cost $22.50, and the A9 chip at $22.00. IHS also points out the incremental cost differences between each step-up in memory capacity, which sees a small component cost difference when in comparison to Apple's $100 jump between capacities like 16 GB and 64 GB, for example.

“NAND Flash is now so cheap it’s almost irrelevant, but Apple monetizes this difference with consumers, to the tune of $100 for each additional step up in memory capacity,” Rassweiler said. “For example, a 64 GB iPhone now costs Apple about $17 more to make than a 16 GB iPhone, but Apple charges iPhone buyers $100 more for the increased memory. This is part of Apple’s ongoing strategy to improve profits by selling a product mix that is heavier in the higher-end iPhones.”

Overall, IHS iSuppli's teardown concluded that the iPhone 6s and iPhone 6s Plus see most of their value additions in the form of overall durability for the new devices. This is thanks to new components like the 7000 Series aluminum case, an upgraded Gorilla Glass 4 cover, as well as "additional gaskets and seals" that IHS says improves the water resistance of the new iPhones, which has been studied in the days since release.

Earlier in the year, Apple CEO Tim Cook went on the record during one of the company's annual earnings calls, denouncing component cost teardowns like IHS iSuppli's of the iPhone 6s Plus. "I've never seen one that is anywhere close to being accurate," Cook said.

Such estimates do not take into account an array of costs, including research and development, software, and licensing costs, making profit margins appear much larger than they actually are. And given the proprietary nature of many of the components, cost estimates can be rough. The estimates can, however, be somewhat useful in comparing differences between generations to get a general idea of the potential cost impact of hardware changes.

Related Forum: iPhone

Top Rated Comments

Shanpdx Avatar
98 months ago
32GB should be at the base.
Score: 14 Votes (Like | Disagree)
ThatTechGuy Avatar
98 months ago
[Queue posts about how this doesn't account for extensive R&D costs]
Score: 10 Votes (Like | Disagree)
ck2875 Avatar
98 months ago
I'm really impressed that Apple was able to simply walk into to RadioShack and buy all these parts for ~$236
Score: 9 Votes (Like | Disagree)
CB1234 Avatar
98 months ago
Cue the comments ====== Apple is greedy =======
Score: 9 Votes (Like | Disagree)
todhug Avatar
98 months ago
32GB should be at the base.
Apple makes billions every quarter. They keep getting richer and richer. I'm a huge Apple fan and a huge customer of Apple, not only personally, but corporately too. I'm glad they are rewarded for their quality and ingenuity. However, this was pure greed and you would think they could give their customers a break. Especially lower and middle class America. I hope this hurts them. As a dedicated customer for over 10 years having spent 100s of thousands of dollars they are pushing my limits. I have other options as much as I hate to go there. They probably sat around the table telling themselves, if we keep the 16GB we will take the extra profit and give ourselves huge bonuses this year.

Agreed, the base should be at 32GB. This was a stupid executive/accounting move. Shame on you Apple and shame on you Tim Cook. Would it be too much to help your customers out a bit?
Score: 7 Votes (Like | Disagree)
xmlninja Avatar
98 months ago
These costs doesn't include the price and effort put in to developing the actual components. Without that work, there wouldn't be any components in the first place.
Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
apple tv 4k red image

Apple Releases tvOS 16.4 for Apple TV 4K and Apple TV HD

Monday March 27, 2023 10:00 am PDT by
Apple today released tvOS 16.4, the fourth major point update to the tvOS 16 operating system that came out last September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.4 comes two months following the release of tvOS 16.3. The tvOS 16.4 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software Update....
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
Apple Music Classical

Apple Explains Why It Launched an iPhone App Dedicated to Classical Music

Monday March 27, 2023 8:54 pm PDT by
Apple today published a support document explaining why it decided to release a standalone Apple Music Classical app for classical music. In short, Apple says the app was designed to support classical music's complex metadata:Classical music is different. It has longer and more detailed titles, multiple artists for each work, and hundreds of recordings of well-known pieces. The Apple Music...
iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Low-Energy Chip to Allow Solid-State Buttons to Work When Device is Off or Out of Battery

Wednesday March 29, 2023 1:54 am PDT by
The iPhone 15 Pro and Pro Max will use a new ultra-low energy microprocessor allowing certain features like the new capacitive solid-state buttons to remain functional even when the handset is powered off or the battery has run out, according to a source that shared details on the MacRumors forums. CAD-based render of new solid-state buttons on iPhone 15 Pro models The source of this rumor is ...