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iPhone 7 BOM Rises From 6s to $224.80, IHS Says

The $224.80 cost to build the iPhone 7 ($649) is $36.89 higher than IHS' analysis of the iPhone 6s performed in December, the analytics company reported. The bill of materials cost for the iPhone 7 is in line with IHS…

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teardowns of recent high-end Samsung smartphones, said analyst Andrew Rassweiler. Expansion to 32 GB base storage density, from 16 GB, is only the second time Apple has stepped up base storage in the iPhone, he said. Overall memory cost “puts pressure on the bill of materials costs -- and therefore margins,” Rassweiler said. Apple eliminated segmented antenna bands, which means the company is pushing all radio-frequency paths to the ends of the phone, due to the aluminum unibody construction and design, said analyst Wayne Lam. “This design limitation may force Apple to go back to an all-glass design again so that they can fit in 4x4MIMO LTE antennas and more features like wireless charging in the next iPhone iteration.”