Apple rakes in huge money from iPhone 6 Plus, spending less

Users who wish to buy iPhone 6 Plus rather than the iPhone 6, will have to pay $100 extra. However for Apple, the iPhone 6 Plus costs only about $16 more to produce.

The bill of materials (BOM) of the iPhone 6 Plus amounts to $211.10, and rises to $215.60 with the additional $4.50 manufacturing cost added. This is only $15.50 higher than the total for the iPhone 6.

ALSO READ: Apple sells record 10 million iPhone 6 and iPhone 6 Plus

iPhone 5 vs iPhone 6 vs iPhone 6 Plus

“In the past, the premium versions of iPhone offered higher memory configurations for additional profit.  While Apple continues this memory strategy, the company is also taking a similar approach with the iPhone Plus, structuring its pricing to add bottom-line profit on models that have a very desirable feature: a large phablet-sized display.” said Andrew Rassweiler, senior director, cost benchmarking services for IHS.

The 16GB version of the iPhone 6 is priced at $200 with a contract from a wireless operator whereas the iPhone 6 Plus is priced for $300. The pricing for the two phones is $649 and $749 without any contract.

The most noticeable difference between the two new Apple smartphone models is the display, with the iPhone 6 sporting a 4.7-inch screen, and the Plus coming in at 5.5 inches. However the large does not account for the entire cost differential between the two phones; the Plus also carries higher BOMs for its enhanced camera and battery subsystems.

ALSO READ: Apple to delay the launch of next-gen iPad mini

Both the smartphones sport IPS LCD displays. Because of its larger size, the display/touch-screen subsystem in the iPhone 6 Plus carries a cost of $52.50, compared to $45.00 for the iPhone 6.

The iPhone 6 Plus battery has a capacity of 11.1 watt-hours (Wh), compared to 6.91 Wh for the iPhone 6. Because of this, the battery subsystem in the Plus is $1.00 more expensive than in the iPhone 6.

Both iPhones have more capacity than the 5S, which came in at just 5.92 Wh. Also, the camera of the Plus is $1.50 more expensive than in the iPhone 6.

The A8 in the iPhone 6 and iPhone 6 Plus models costs $20.00, compared to $17.00 for the A7 in the iPhone 5S.

The new iPhone 6 and 6 Plus feature an accelerometer from Bosch Sensortec and the 6-axis sensor from InvenSense. The new iPhones also have a barometric sensor, marking the first time Apple has employed this type of sensor in its smartphone line.

To support the new  Apple Pay feature, the new iPhones add a near-field communication (NFC) chip, another first for Apple’s smartphones. The latest phones include the PN65V NFC controller from NXP Semiconductors, as well as a previously unseen NFC-booster integrated circuit from AMS.



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