iPhone 7 Component Costs Estimated to Start at $220 - MacRumors
Skip to Content

iPhone 7 Component Costs Estimated to Start at $220

by

exploded_view_apple_iphone_7iPhone 7 component costs are estimated to start at $219.80, which is $36.89 higher than iPhone 6s, according to a preliminary teardown [Excel] of a 32GB model by IHS Markit.

The display remains the most expensive component, costing an estimated $43, followed by an Intel modem and other baseband chips worth an estimated total of $33.90.

Apple's quad-core A10 Fusion chip is the third most expensive item on the bill of materials, costing an estimated $26.90. Meanwhile, the larger 1,920 mAh battery is said to cost just $2.50.

The larger rear-facing iSight camera and improved 7-megapixel front-facing FaceTime camera cost a combined $19.90, according to IHS Markit. Electromechanical components, including the Taptic Engine, antennas, connectors, microphones, and stereo speakers, cost an estimated $16.70 combined.

iPhone 7's 2GB of RAM supplied by Samsung, and 32GB of flash storage supplied by SK Hynix, are estimated to cost a combined $16.40. An audio codec and audio amplifier supplied by Cirrus Logic, an NFC controller supplied by NXP, a Bosch Sensortec-made barometer, along with an accelerometer, gyroscope, Touch ID, proximity sensor, and other sensors, cost an estimated $14 altogether.

The accessories included in the iPhone 7 box, including a Lightning-to-USB cable, Lightning-to-3.5mm audio adapter, EarPods with a Lightning connector, and 5W USB power adapter cost an estimated $11.80 combined.

IHS raises Apple's total cost to manufacture the iPhone 7 to $224.80 after adding $5 in "basic manufacturing costs" related to assembly, insertion, and testing. A 32GB iPhone 7 Plus costs $649 as a point of comparison.

However, the bill of materials does not factor in costs related to, among other things, research and development, software, licensing costs, and transportation. The accuracy of the component costs is also questionable. Last year, Apple CEO Tim Cook said he has never seen a cost breakdown that is "anywhere close to being accurate," adding that they are generally "much different than the reality."

At least in comparison to IHS estimates for previous iPhones, the iPhone 7's bill of materials is seemingly costlier than the iPhone 6, iPhone 5s, and iPhone 5, each estimated to start at $200, and the iPhone SE at $160.

Tag: IHS
Related Forum: iPhone

Popular Stories

iPhone Handoff iOS 27 Feature

T-Mobile to Charge $5 a Month for iOS 27 iPhone Handoff

Thursday September 10, 2026 3:58 pm PDT by
T-Mobile will charge customers $5 per month to use iPhone Handoff, an e-SIM feature that allows the same phone number to be used on two separate iPhones. iPhone Handoff requires carrier support, and at launch, only T-Mobile users in the U.S. and Deutsche Telekom users in Germany will be able to use it. T-Mobile says customers can use their number across two compatible iPhone models and...
Read Full Article • 152 comments
iOS 27 Feature Dark

Apple Announces iOS 27 Release Date

Wednesday September 9, 2026 10:46 am PDT by
At its event today unveiling the iPhone 18 Pro, AirPods 5, Apple Watch Series 12, and more, Apple announced that iOS 27 will be released later this month. iOS 27 has already been available as a developer beta since June and as a public beta since July, and Apple today said that the update will be released for all users with a compatible iPhone model on Monday, September 14. iOS 27 is...
Read Full Article • 40 comments
iphone duo

IMAX Reacts to iPhone Duo's 1:1.4 Aspect Ratio Displays

Friday September 11, 2026 4:42 am PDT by
Production theater company IMAX has responded in a mixed way to Apple's embrace of a 1:1.4 aspect ratio on the iPhone Duo's inner and outer displays. The boxier ratio happens to be very close to the classic "full-frame" IMAX 1.43:1 aspect ratio, which comes from the geometry of the company's original 15-perforation/70mm film system. In response to an X post from someone wondering if we'll see...
Read Full Article • 74 comments

Top Rated Comments

magicschoolbus Avatar
magicschoolbus
130 months ago
removing the headphone jack must of saved a lot of $ per unit. so courageous of them, saving all of that money.
Score: 33 Votes (Like | Disagree)
danakin Avatar
danakin
130 months ago
Before people lose their spit over how much profit the Cupertonians rake in per device, stop to consider costs for:

* Research and Development
* Marketing
* Shipping
* Taxes
* Legal
* Regulatory compliance
* Facilities (leases and sundry expenses)
* Salaries and benefits
* Warehousing
* Product testing
* Event planning and management
* Internal and Retail training

I'm sure there are others but those are at the top of my head.
Also if customers and/or suckers (depends on your perspective) choose to dole what what they're asking for, then keep charging what the market will bear. Capitalism folks!
Score: 22 Votes (Like | Disagree)
ftaok Avatar
ftaok
130 months ago
These cost breakdowns are always so irrelevant. They don't tell much of a story at all.

So all of those parts that Apple buys, like the Intel modem for $33.90, doesn't cost Intel that much to make. So let's pull a number of of the air and say that it costs Intel $13.24 for the modem. Then whoever is supplying the stuff that Intel has to buy to make the modem isn't selling at cost either.

Eventually, it's all free since the air, water, sand, etc to make all of the stuff is available at your local beach. Apple so greedy!

I cringe every September when this post comes out to imply that the iPhone costs $200 to make.
Score: 22 Votes (Like | Disagree)
Small White Car Avatar
Small White Car
130 months ago
I know people moan about how these prices aren't accurate don't reflect other costs, but I find the year-to-year comparisons to be quite informative.

It doesn't matter what the actual numbers are, it still shows that Apple is striving to squeeze more into these phones than ever before at the expense of their margins.

And that's interesting info.
Score: 22 Votes (Like | Disagree)
N
now i see it
130 months ago
+ 500 million R&D
Score: 18 Votes (Like | Disagree)
L
LordVic
130 months ago
GREEDY APPLE!!!!!

now that that's out of the system:

we're about to get inundated wiht hundreds of post who somehow think that this in any ways is reflective of the price we pay and that we're all being "ripped off"

you cannot ever equate raw hardware costs with retail pricing. Hardware costs are only a portion of the total costs that go into each device.

the fact that the iPhone 7 actually comes with industry standard hardware finally (2gb ram, and the 32gb base storage) and is clearly costing Apple more to produce from a hardware standpoint, it's clear that Apple is lowering margins on iPhone sales, which is kind of the opposite of "greedy"
Score: 14 Votes (Like | Disagree)
Read All Comments