Several outlets reported that sales of the iPhone 8 and iPhone 8 Plus were not as strong, but others argue that the shorter lines are due to optimizations in distribution and shipping. Beyond these differences in interpreting supply and demand, there is a question we all inevitably return to: How much does the smartphone really cost? The folks at IHS Markit conducted a component analysis and determined that the total bill of materials for the iPhone 8 Plus comes to 288 dollars, while the official price is $799.
Sales and the iPhone X Factor
One of the first sites to report a so-called 'decline' in sales of the new iPhones was Fortune. Citing adoption indices published by analytics firm Localytics, the idea is that the standard iPhone 8 only managed to capture 0.3 percent of the international iOS market, while the iPhone 7 took 1 percent at its debut. At the same time, the numbers for the iPhone 8 Plus double those of the iPhone 7 Plus (0.4 versus 0.2 percent), so it's not all bad news. However... we must be honest: the only thing capable of cannibalizing sales of the iPhone 8 and 8 Plus these days is the iPhone X. There is a $200 difference between the 64GB iPhone 8 Plus and its new bigger brother, so it's not hard to imagine Apple fans pooling their resources to get the iPhone X. Even so, that's a huge amount of money for a smartphone. So, if Apple can ask those sums... how much is it really worth?
The IHS Markit Teardown
Unfortunately, we'll have to wait a while to learn the exact figure for the iPhone X, but the folks at IHS Markit published an analysis of the BOM ('bill of materials') for the 64GB iPhone 8 Plus, which comes to $288.08 in components alone, plus just $7.36 in manufacturing costs. That makes it nearly $18 more expensive than the iPhone 7 Plus. If we try to identify the hardware that most influences that change, we'll find all the elements related to wireless charging support, and the expansion in NAND memory. The iPhone 8 still has to undergo a similar analysis, but IHS Markit anticipates a cost below $250.
In summary, the iPhone 8 Plus never crosses the $300 barrier, and Apple asks $800. Granted, the Cupertino giant is facing significant expenses with its hybrid headquarters and spaceship, and of course, you always have to keep shareholders happy. And to think that on more than one occasion we've talked about the possibility of a low-cost iPhone...
