Do you know iPhone 7 and 7 plus are cheaper than you think....

For many of us iPhone is the best or ideal smartphone and some people may call it the Godfather of all smartphones and as we all know Apple.inc is the manufacturer behind this godfather. In the past decade iPhone has created a very big fan base as we saw at the launch of iPhone 7 where a fan or we should call the biggest fan of iPhone sat in rain for 18 hours to get his first iPhone 7…where these people come from……I mean who do that for a phone. OH! Sorry I mean iPhone 😩

Anyway, the concern here is not about the craziness of people behind buying an iPhone, but about the cost of manufacturing.

According to a report by IHS Ltd. Apple Inc. is spending more to manufacture iPhone 7 than it did for the iPhone 6S and yet they are making higher margins in hardware.

The tear down report by HIS shows that for the base model of iPhone 7 that is a 4.7” screen and only 32 GB variant the total manufacturing and raw material cost is $219.80 that is approx. 14000 INR and complete Bill-Of-Material (BOM) cost along with manufacturing cost comes to $224.80 approx. 15000 INR, that is one fourth of what they take from the customers at time it launched which is about $649 approx. 60000 INR and now you can purchase it around 48000 at any online or offline store.

Report also says that the rival manufacturer SAMSUNG is also using the same material for their flagships at the same quantity and price but Apple is making more profit that is 20% higher than the iPhone 6s.

As the new iPhone is on its way it will be interesting to see at what price it will launch as SAMSUNG already launched their Note 8 which seems to be an interesting deal. Let's see what happens on 12th September when the APPLE launches its new iPhone at STEVE JOBS theatre. There is not any official name for new iPhone yet, it could be iPhone 7s or iPhone 8 or something other than this but one thing is sure it will be a great leap for APPLE after 6s.