The launch of the iPhone 7 affected thousands of people across the globe. However, the manufacturing cost of an iPhone 7 and the selling price will surprise you.

Here’s How Much It Costs To Manufacture The iPhone 7

We all know very well that the all new iPhone 7 and 7 Plus arrived at the end of this week and the new iPhone 7 and iPhone 7 Plus promise to revolutionize the market for smartphones. It was one of the most talked and hot topics in recent days.

We have seen the launch of iPhone 7 affected thousands of people worldwide and it will not fail to do so for a long time. Recently we saw Apple’s Biggest fan who sat in the rain for 18 hours to buy the new iPhone 7. However, apart from the craziness of people have you ever thought what can be the actual price of making an iPhone?

The total cost to produce an iPhone is $224.80 that is approximately Rs. 15,000 INR which is $36.89 higher that the iPhone 6S which also includes $5 in basic manufacturing costs. However, the selling price of the phone is Rs. 60,000 which is nearly four times higher!

IHS Markit said on Tuesday that the new iPhone 7’s Bill of Materials (BOM) a financial estimate of the raw materials used, was “in line” with flagship smartphones made by rival Samsung but Apple saves out better margins.

Andrew Rassweiler, senior director of cost benchmarking services at IHS Markit said “All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past”

The teardown analysis on the larger iPhone 7 plus was not yet conducted by IHS Markit. The stocks of Apple’s iPhone 7 plus have been exhausted in all stores and the smaller version that is iPhone 7 is also sold out in the jet black color the company said.

Apple retails an unsubsidized 32GB iPhone 7 that doesn’t have headphone jack at $649 (priced at Rs 60,000) in India.