The Cost of Making the iPhone 7

The Cost of Making the iPhone 7

Last week, the new iPhone 7 and 7 Plus officially went on sale in the United States and around the world. Starting at $649, Apple's new smartphone isn't exactly a bargain, but it does pack a lot of technology and, according to some performance benchmarks, it's more powerful than many PCs.

So we know how much we have to pay for an iPhone 7, but how much does it cost Apple to produce it? A lot less. According to estimates by IHS, the material and manufacturing costs (excluding other expenses such as R&D and marketing costs) of the cheapest iPhone 7 amount to $224.80. While that may not sound like a lot, it is the most expensive standard-sized iPhone Apple has ever made, as our chart illustrates.

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