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Teardone Of iPhone SE Shows New Phone Is 1 Part iPhone 5s, 1 Part iPhone 6 And 1 Part iPhone 6s; Costs $160 To Build

Teardone Of iPhone SE Shows New Phone Is 1 Part iPhone 5s, 1 Part iPhone 6 And 1 Part iPhone 6s; Costs $160 To Build

One of the first teardowns of Apple Inc. (NASDAQ: AAPL) new iPhone SE is out.

DigiTimes, citing preliminary estimates by IHS, reported that it costs $156.20 to assemble a 16GB iPhone SE device. The figure rises to $160 per device once the cost of manufacturing is added.

Apple sells its iPhone SE 16GB model for $399.

The report added that the new iPhone uses many of the same components that were included in prior iPhone devices. Specifically, the design envelope is similar to the iPhone 5s, shares the same RF components found in the iPhone 6 and shares the 12-megapixel primary camera module found in the iPhone 6s.

Related Link: Apple iPhone SE Sales Are 'Uninspiring,' Supply Chain Analyst Warns

"The iPhone SE represents an amalgamation of three iPhone generations, iPhone 5s, iPhone 6 and iPhone 6s, rolled into something altogether new," DigiTimes quoted Andrew Rassweiler, senior director of cost benchmarking services at IHS as saying in its report. "Despite its physical resemblance to the iPhone 5s, the resulting product is far superior. In fact, the only significant tradeoffs a consumer would make with the iPhone SE against the iPhone 6s is smaller size and lower screen resolution."

"Apple is willing to drop its gross margin on the low end to induce sales, though it is likely counting on many consumers upgrading to the more profitable 64GB SE model," Wayne Lam, principal analyst, mobile devices and networks, IHS Technology also said in the report. "When the profit machine that is Apple capitulates to the market forces of a maturing industry, it shows its tacit acknowledgment that even it is not immune to the dynamics of the global smartphone slowdown."

Posted-In: Andrew Rassweiler Digitimes IHS iPhone Costs iPhone SE iPhone SE Teardown Wayne LamTech Best of Benzinga


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