Based on a manufacturing cost breakdown from Teardown.com and research firm IHS, which was charted for us by Business Insider Intelligence, Apple will likely make huge margins from its latest phones due to the low cost of materials.
The iPhone 6 and iPhone 6 Plus cost $US649 and $US749 without a contract, respectively. The display glass and multi-touchscreen are the two most expensive elements of the phones, and the processors are pretty costly, too. But as a whole, the iPhone 6 costs only $US15.51 more to make than last year’s iPhone 5S (now $US99), and the iPhone 6 Plus costs an extra $US15.50 more than the iPhone 6 — or $US31 more than the iPhone 5S. In other words, Apple makes huge margins any time someone buys an iPhone 6 Plus, which costs $US100 more than the iPhone 6: Based on figures from Re/code, 73% of the iPhone 6’s selling price turns into profit for Apple, compared to 76% for the iPhone 6 Plus.