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

Please log in to view Printer Friendly Layout

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.