New | Apple’s iPhone 7 more expensive to make: IHS Markit

Apple is spending more to manufacture its iPhone 7 smartphone than predecessor iPhone 6S due to features such as a bigger battery and larger storage capacity, according to a teardown by IHS Markit Ltd.

Including US$5 in basic manufacturing costs, total cost to manufacture the iPhone 7 mobile rises to $224.80, $36.89 higher than the business research provider’s estimates for the iPhone 6S.

Apple retails an unsubsidized 32GB iPhone 7 at $649.

The company unveiled the iPhone 7 with high-resolution cameras and no headphone jack at its annual launch on September 7.

IHS Markit also said on Tuesday the iPhone 7’s Bill Of Materials (BOM), a financial estimate of the raw materials used, was “in line” with flagship smartphones made by rival Samsung Electronics but Apple ekes out better margins.