Apple’s iPhone 6S Plus sells for $749 in the US and according to a recent report it costs Apple just $236 to make the handset.
The $236 figure includes all the parts and the manufacturing of the device. The iPhone 6S is apparently slightly cheaper to make, costing about $20 less. This would mean that Apple is making a healthy profit of around $513 on each of the 6S Plus handsets it sells. You can see a breakdown of the costs for the device below.
Cost Breakdown and Profit Margins
The cost breakdown for the iPhone 6S Plus includes various components such as the display, processor, memory, and other materials. For instance, the display is one of the most expensive parts, costing around $52.50. The A9 processor, which is the brain of the device, costs about $25. The memory chips add another $20 to the total cost. Other components like the camera, battery, and sensors contribute to the overall cost as well. The manufacturing cost, which includes assembly and testing, is estimated to be around $4.50 per unit.
Given these costs, Apple’s profit margin on the iPhone 6S Plus is substantial. With a selling price of $749 and a production cost of $236, Apple makes a profit of approximately $513 per unit. This high-profit margin is one of the reasons why Apple remains one of the most profitable companies in the world.
Sales Performance and Market Impact
Apple recently announced that it sold a total of 13 million of its iPhone 6S and 6S Plus handsets in its first weekend, up from 10 million last year. This impressive sales performance highlights the strong demand for Apple’s latest smartphones. The increase in sales can be attributed to several factors, including the introduction of new features like 3D Touch, improved cameras, and faster processors.
The company will announce its latest financial results next month, and we are expecting the increased sales of the new iPhones to be included in the release. These results will likely show a significant boost in revenue and profits, further solidifying Apple’s position in the market.
Apple’s ability to sell millions of units within a short period also has a ripple effect on the entire tech industry. Suppliers and manufacturers benefit from the increased demand for components, while competitors are pushed to innovate and improve their own products to keep up with Apple’s advancements.
Moreover, the success of the iPhone 6S and 6S Plus has a positive impact on Apple’s ecosystem. More iPhone users mean higher adoption rates for services like iCloud, Apple Music, and the App Store, which contribute to Apple’s recurring revenue streams.
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Image Credit Unbox Therapy
Have a look at our handy guide on how to improve iPhone battery life. Have a look at our iPhone 6S vs Samsung Galaxy S7 comparison.
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