vacancies advertise contact news tip The Vault
It's EPIC GIVEAWAY TIME! NEW PRIZE EVERYDAY! [x]
facebook rss twitter

iPhone 6 Plus costs $16 more to produce, demands $100 premium

by Mark Tyson on 24 September 2014, 10:55

Tags: iPhone

Quick Link: HEXUS.net/qacjkn

Add to My Vault: x

The analysts at iHS wrote to HEXUS to tell us about the materials cost teardown which they have just completed writing up. This once concerns the iPhone 6 Plus, the 5.5-inch smartphone in Apple's new iPhone range. The headline observation is that although the 5.5-incher would cost only $15.50 extra to manufacture over the equivalent storage capacity 4.7-inch screened device Apple is squeezing a premium of $100 from its customers for that little extra bit of screen estate.

iHS compared the BOM (bill of materials) for the two new Apple iPhone 6 models with 16 gigabytes of NAND flash memory. Following its research of component prices and assembly costs it found that the iPhone 6 costs $200.10 + $4.00 for manufacturing. The iPhone 6 Plus costs $211.10 for materials and $4.50 for manufacturing. Despite less than $16 in cost differences between the two 16GB models Apple charges a premium of $100 for the Plus.

Andrew Rassweiler, senior director, cost benchmarking services for HIS shared his thoughts on the findings "Apple has always been adept at offering higher-end iPhone models with enhanced, desirable features—and then pricing those versions for maximum profitability." He noted that the bigger-screen bigger-markup strategy runs in tandem to Apple's traditional storage memory mark-up strategy.

Bent not curved

Unfortunately Apple's Plus size 'premium' build doesn't appear to include any additional structural rigidity. There are several stories around the internet offering various photos of bent iPhone 6 Plus models. The Consumerist shows a couple of pictures and links to a video too.

Apparently these bends were caused from just day to day lugging around an iPhone 6 Plus in a trouser pocket. So if you have one of these expensive smartphones you should perhaps be more careful, use a jacket pocket for example, or invest in some kind of Plus-sized smartphone shoulder holster.



HEXUS Forums :: 55 Comments

Login with Forum Account

Don't have an account? Register today!
Just standard fare with apple !
I'm quite surprised if that issue with the bending phones, especially after such a short time. Would have thought that testing would have produced the same issue.

An android user myself, but any company would love to be able to sell for such a high profit margin.
Despite less than $16 in cost differences between the two 16GB models Apple charges a premium of $100 for the Plus. … There are several stories around the internet offering various photos of bent iPhone 6 Plus models.
It's not “bent”, it's “curved” - Apples charging the $84 extra because you're getting a large screen and a curved model in one phone - Samsung has to do two separate models.
:p or rather ;)

My 5.5“ G3 is fine as is, I strongly suspect, those folks with Galaxy Note's. Speaking of my G3, is a 5.5” screen'd phone now officially “a phablet” then? Just curious, although in the case of the G3 it's maybe arguable since there's a stylus-equipped version of the same size.
I bought the iPhone 6 (non-plus) and I have to say; I love it. I personally don't understand the lure of enormous phones that resemble tablets - surely that can't be comfortable to carry in your pocket.

To each their own, I suppose.
Quality of the Plus seems a bit worrying:

https://www.youtube.com/watch?v=znK652H6yQM

Seems the iPhone 6 Plus can bend pretty easily.