iPhone 7 Component Costs Estimated to Start at $220

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

Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Max Battery Capacity Leaked

Thursday July 3, 2025 5:40 am PDT by
The iPhone 17 Pro Max will feature the biggest ever battery in an iPhone, according to the Weibo leaker known as "Instant Digital." In a new post, the leaker listed the battery capacities of the iPhone 11 Pro Max through to the iPhone 16 Pro Max, and added that the iPhone 17 Pro Max will feature a battery capacity of 5,000mAh: iPhone 11 Pro Max: 3,969mAh iPhone 12 Pro Max: 3,687mAh...
iPhone 17 Pro Lower Logo Magsafe

iPhone 17 Pro's New MagSafe Design Revealed in Leaked Photo

Wednesday July 2, 2025 8:37 am PDT by
The upcoming iPhone 17 Pro and iPhone 17 Pro Max are rumored to have a slightly different MagSafe magnet layout compared to existing iPhone models, and a leaked photo has offered a closer look at the supposed new design. The leaker Majin Bu today shared a photo of alleged MagSafe magnet arrays for third-party iPhone 17 Pro cases. On existing iPhone models with MagSafe, the magnets form a...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...
Wi Fi WiFi General Feature

iOS 26 Adds a Useful New Wi-Fi Feature to Your iPhone

Wednesday July 2, 2025 6:36 am PDT by
iOS 26 and iPadOS 26 add a smaller yet useful Wi-Fi feature to iPhones and iPads. As spotted by Creative Strategies analyst Max Weinbach, sign-in details for captive Wi-Fi networks are now synced across iPhones and iPads running iOS 26 and iPadOS 26. For example, while Weinbach was staying at a Hilton hotel, his iPhone prompted him to fill in Wi-Fi details from his iPad that was already...
iOS 18

Apple Releases Second iOS 18.6 Public Beta

Tuesday July 1, 2025 10:19 am PDT by
Apple today seeded the second betas of upcoming iOS 18.6 and iPadOS 18.6 updates to public beta testers, with the betas coming just a day after Apple provided the betas to developers. Apple has also released a second beta of macOS Sequoia 15.6. Testers who have signed up for beta updates through Apple's beta site can download iOS 18.6 and iPadOS 18.6 from the Settings app on a compatible...

Top Rated Comments

magicschoolbus Avatar
115 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)
ftaok Avatar
115 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)
danakin Avatar
115 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)
Small White Car Avatar
115 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)
now i see it Avatar
115 months ago
+ 500 million R&D
Score: 18 Votes (Like | Disagree)
LordVic Avatar
115 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)