The iPhone 6 and iPhone 6 Plus are selling well, keeping in view the long queues outside the retail outlets. Apple is all set to make a huge killing with its latest iteration of iPhone.
A recent teardown analysis conducted by a firm revealed that iPhone 6 costs $200 to $247 to make and sells for $US649. Apple will make a cool profit of 69 per cent. The tear down was done by research firm HIS and the cost is based on an analysis of the parts used in each model and the labor involved which comes out to be $4 to $4.50
The iPhone 6 models cost the Cupertino Giant in between $US200 ($225) to $US247 ($278) and will sell for $US649 and $US849 without a contract. The expensive models with 128 GB storage will be getting Apple a slightly higher margin.
Apple will rake in a higher profit in Australia where the cheapest iPhone 6 costs $869 which points to a 74.1 % profit margin.
The analysis does not take into account the other costs which are also involved and this includes advertising, marketing and distribution.
Apple has considerably improved its profit margin in comparison to the past. The iPhone 5 and iPhone 5S both had the same range of profitability around 69%. The first iPhone which was launched by Apple gave it a profitability of 55%.
The display and the touch screen add up to become a major chunk of material costs. The iPhone 6 screen costs $45 and the iPhone 6 plus costs $52.50. A margin of 69% is very healthy.
The Samsung Galaxy S5 with 32 GB costs the South Korean company $ 251.52 and the smartphone sells unlocked for $599 which gives Samsung a profit margin around 58 per cent