The New iPhone 8 Plus Costs $1,229, It Cost Just $360 To Manufacture
The new 64GB Apple iPhone 8 Plus will cost you $1,229 the cost to manufacture the device is just A$360, a difference of $869.
According to a new bill of materials report the device is $21 more expensive to manufacture than the iPhone 7 according IHS Markit from the $869 comes Apple huge profits, market and sales costs.
“The higher total BOM cost for the iPhone 8 Plus can’t be tied to a single area or feature. The higher cost is the result of slower annual component cost erosion tied in with additional features,” said Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit. “From a teardown perspective, the biggest cost adders would be the increased NAND flash memory content and new wireless charging components.”
Like the iPhone 7 Plus, the iPhone 8 Plus features a 5.5-inch Full HD display, an aluminium frame and hardened glass. This year’s model features wireless charging; hence the aluminium uni-body design was abandoned for a more traditional glass back.
According to DigiTimes Apple’s shipments for the last quarter were flat year-on-year and Samsung’s Galaxy S8 devices have been successful in the high-end pricing segment, creating a competitive environment,” said Gerrit Schneemann, IHS senior analyst for mobile handsets. “The iPhone X stands to further confirm Apple’s grip on the premium pricing tier when it becomes available in November.”
One of the main upgrades for the iPhone 8 and 8 Plus is a new proprietary six-core, 64-bit A11 Bionic chip, which is manufactured using a new 10nm process. The new chip means the phone runs about 30% faster than last year’s A10 CPU, runs more efficiently at half the power, and the battery life is prolonged. The chip is powerful for a phone of this size, and used to push the phone’s augmented reality (AR) experience.
Apple is putting artificial intelligence (AI) to use in the updated the iPhone Plus camera. Special neural engine in A11 Bionic chip enables a host of computational photography capabilities in the portrait mode on the iPhone 8 Plus.
For the first time, all six cores of the CPU cluster can be activated at once to crush through operations. The A11 Bionic also features an all-new Apple designed tri-core GPU that boasts 70% better graphical performance than its predecessor.
This has led to claims that the new components are sucking juice out of the iPhone 8 battery.
Unlike the Samsung 8 and the LG V30 the iPhone 8 does not feature an edge-to-edge OLED display as expected in the iPhone X.
The new iPhones have the same LCD displays as in last years iPhone 7.
The iPhone 8 series are the first Apple smartphones to support wireless charging, allowing the phones to be charged by placing them face up on a special mat or tabletop a component that Apple is set to sting users for.
Wireless charging is typically slower than corded charging, and requires a plastic or glass back, which can make the phones more fragile.
The iPhone 8 and 8 Plus have new sensors, with lenses featuring f1.8 and f2.8 apertures – brighter than the 7 Plus telephoto – in the iPhone 8 Plus. It also has new colour filters. Studio lighting includes dropping the background out completely to black.
The cameras have been calibrated for AR, and the A11 Bionic chip is also optimized for AR. Gamers will like the spatial audio with sound occlusion from digital objects in the games, creating a more realistic virtual world. Slow-motion video capture at 1080p is also smoother, at 240 frames per second – double from last year.
“From our BOM analysis, we can see that Apple invested heavily in the camera capabilities of the iPhone 8 Plus due to the increase in component costs,” said Wayne Lam, principal analyst, mobile devices and networks for IHS Markit.