The much hyped 2015 flagship smartphones from Apple, the iPhone 6S and the iPhone 6S Plus, have been officially announced. The new iPhone 6S models are expected to break all previous iPhone sales records. Moreover, it has been found that the Cupertino giant spends only $234 on the production of a 64GB handset. Hence, this year too, Apple is yet again likely to earn huge profits.
A research conducted by the Bank of America Merrill Lynch shows that Apple has spent $181 on the components of the iPhone 5S. The cost of the components increased to $205.8 for the iPhone 6 and $222.8 for the iPhone 6S Plus in 2014.
It is estimated that Apple spends $234 on the production of the 64GB model. Merrill Lynch has provided a breakdown of the handset's production cost.
It stated that Apple spends $127.2 on the semiconductor of the 64GB iPhone 6S Plus, which includes $36 on the radios such as the new Cat. 6 LTE modem, $25 for the A9 chip, $22 for different sensors like fingerprint scanner and NFC, $20 for the 64GB flash storage, Business Insider reported.
The $73.8 cost mainly accounts for major components like the display, battery and the new cameras. The series 7000 aluminum chassis is priced at $33.
Although the production cost of a 64GB variant costs only $234, Apple sells it for a whopping $749. It may seem that Apple is earning $515 on each 64GB iPhone 6S unit. However, one should be aware of the fact that the company also invests in research, development, manufacturing and distribution, but it may not be a massive expenditure, Phone Arena reported. This indicates that Apple certainly earns sizeable profit on the sale of each iPhone 6S unit.