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Today, we are going to make a ground-breaking analysis of the actual cost of iPhone 7 for which people are paying whopping 60-70k. There is a reason why Apple happens to be the most profit making company in the world and we are going to reveal the secret behind that. You will be surprised to know the actual manufacturing cost and even if you add promotion and marketing cost, there is no way you can justify the price tag. 

 

1. Screen and Camera

 

 

iPhone 7 provides 4.7 inches sized 750 x 1334 pixels resolution IPS LCD display. The actual cost is around Rs 4,000.

iPhone 7 Plus boasts dual back camera with 12 MP and front camera of 7 MP. The actual cost is around Rs 1500 because there are produced in bulk. 

 

 

 

2. Battery, Speakers, and Casing

 

 

iPhone 7 provides a great battery but its actual cost is merely Rs 500 because it is made in China. The speakers cost merely Rs 1000 and the entire casing is of Rs 1500.

 

 

 

3. Processors, Memory and Logic Board

 

 


The real price of iPhone or any smartphone for that matter lies in the processor and logic board. The sum total of iPhone 7's processor, memory and logic board is around Rs, 13000 only.

 

 

 

4. Other Expenses

 

 

So far the total manufacturing cost is 20,500 if you add the above-mentioned prices of different parts. Now, Apple uses its own OS and Apps and there are costs for research work, promotion, marketing and taxes for which you can allot Rs 10,000 per phone given the fact that iPhone gets the highest sales figures every year among its peers.

 

5. The Actual Cost

 

 

So, it should not cost more than 40,000 if you add the profit factor in it. But you are paying 60-70K for one iPhone as if it is a piece of diamond. That just explains how Apple has reached where it is now in the global business scenario.