These are the production costs for iPhone 8 and iPhone 8 Plus

- Adrian Ungureanu

iPhone 8 and iPhone 8 Plus went through a teardown at IHS Markit and they made an analysis of the production cost, based on the prices of the parts and assembly costs.

The new Apple iPhone 8 Plus, equipped with 64 gigabytes (GB) of NAND flash memory, carries a bill of materials (BOM) cost that comes out to US$288.08 higher than any previous versions of the company’s smartphones, according to a preliminary estimate from IHS Markit, a world leader in critical information, analytics and solutions.

After $7.36 in basic manufacturing costs are added, Apple’s total cost to make the iPhone 8 Plus rises to $295.44, $17.78 higher than that of the iPhone 7 Plus. IHS Markit also estimates that the iPhone 8 bill of materials is $247.51, or $9.57 higher than the Phone 7 at the time of release. After the assembly, iPhone 8’s build cost is $254.46.

The unsubsidized price for a 64GB iPhone 8 starts at $699, which is $50 more than the starting price for the iPhone 7 at launch. The iPhone 8 Plus starts at $799, which is $30 higher than that of the iPhone 7 Plus at launch.

The ratio between production costs and retailer prices are somewhat similar to iPhone X. It’s production cost is estimate at $412, while the recommended US price for the 64GB iPhone X is $999.

Outside the US, prices tend to be much, much higher, in some countries, after taxes and other costs, the retail prices can be $300 to $400 more expensive.