Production of 64 GB iPhone 6S costs only $234 for Apple, claims analysts

The iPhone 6S is available in three storage versions of 16 GB, 64 GB and 128 GB. Bank of America Merrill Lynch has calculated the costs of the components for building a 64 GB iPhone 6S. The investment banking enterprise has found that Apple spends around $234 for building it.

A chart from the investment bank reveals that Apple spends $127.2 on semiconductor, $73.9 on components and $33 on other parts of the iPhone 6S. The chart also reveals that Apple spends $222.8 for building the iPhone 6 Plus (2014). It also mentions that Apple spends $205.8 for building the iPhone 6 from 2014.

The off-contract price of the 64 GB iPhone 6S is $749. According to Bank of America Merrill Lynch, Apple invests only $234 for building it, BusinessInsider.sg reported. The investment banking firm provides a breakdown of the $127.2 expenditure by stating that the Cupertino giant spends $25 for the new Apple A9 chip. The 64 GB flash memory costs $20 for the company.

The cellular radios cost $36 and the all the sensors present on the device such as NFC and the Touch ID fingerprint sensor are priced at $22. The 3D Touch display, the upgraded cameras, and 1,715 mAh battery cost around $73.8. The series 7000 aluminum chassis of the iPhone 6S costs $33.

Apart from production cost of $234 for the 64 GB iPhone 6S, Apple also spends more funds on manufacturing, assembling, R&D and distribution. However, the additional amount may not be a huge expenditure for Apple. Hence, Apple manages to gain huge profits on the sale of each iPhone 6S units.

The iPhone 6S and the iPhone 6S Plus was announced on Sept. 9. Its preorders began on Sept. 12. The shipping of the new iPhone 6S models will begin from Sept. 25. The newly launched iPhones are expected to break the sales record set by the iPhone 6 and the iPhone 6 Plus from 2014.

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