Apple Inc. recently released two new iPhones – iPhone 6s and 6s Plus- and both these devices made record sales in their first weekend. When we hear of record sales, there is always a curiosity on the profit per unit that Apple makes. So, to douse this curiosity, research firm IHS has come up with a teardown analysis.
Huge profits on iPhone
Research firm IHS claims that the larger screen iPhone 6s Plus is selling for more than three-times its cost of production. Apple spends $236 on the making each unit of the large-screen version while the selling price of the device is $749. There is a mark-up of 217.4%, suggesting the tech giant’s ability to dominate the premium smartphone market, says a report from CNBC.
Total cost of materials used in the 16GB iPhone 6s Plus is $231.50, and after the addition of manufacturing costs it rises to $236, says IHS. Apple is spending just $16 more on the iPhone 6s Plus compared to the last year’s model, and is boosting the margins with the use of cheaper components.
For Apple Inc. , the screen is the most expensive component in the iPhone 6s Plus costing $52.50, found IHS. Apple has improved the main camera, which used to be 8 MP in the previous versions, but now it is 12 MP. An upgrade has also been made to the front-facing camera. According to IHS, the cameras cost $22.50 on each device.
Apple Watch selling at good price
While IHS provided detail on the costs of the iPhones, Wristly (a research firm) gave some hint on the average selling price of Apple Watch.
Whether or not the watch can be a new source of growth for the iPhone maker is a topic of interest for many investors, who are constantly monitoring its performance.
Apple Inc. , which offers many products, depends heavily on the iPhone sales. The selling price of the watch varies widely with Sport model retailing for $350 and the solid gold design one retailing for $17,000. Such a wide gap in pricing makes it difficult for the analysts to gauge the profitability of the product. But, not any more. Wristly surveyed more than 2,200 Apple Watch owners with majority pegging the gadget’s average selling price between $425 and $550. This is positive for Apple as the number is at the high end of analysts estimates.