Apple iPhone SE costs just $160 to make, teardown reveals
iPhone SE for sure is the most affordable Apple phone that you’ll ever lay hands on. But the question is, has Apple cut down considerably on its profit margin to bring this 4-inch phone to the consumers? Definitely not because Apple I still making at least $200 on each iPhone SE model it’s selling. The starting 16GB model priced at $399 costs the Cupertino giant just $160 to manufacturer. Even more shocking is the fact that it costs mere $10 more to manufacturer the 64GB model.
A teardown by IHS reveals the innards of this affordable Apple phone. The most expensive hardware inside this phone is its processor which costs Apple $22 and the Qualcomm chip which costs $15. Display comes from LG which set them back around $20. The research and development on design and other aspects also cost Apple almost negligible amount as they adapted iPhone 5S’s design for this phone. Probably branding, advertising and packaging is also costing them a few dollars more on each set.
That said Apple isn’t making a huge chunk of money on the phone as compared to its other models like iPhone 6s or 6s Plus. A lot goes into Apple branding and even if they are not making that much money on the phones, the teardown reveals quite a lot.