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These three components contribute to the high prices of the iPhone 8

By Cookie Monster - on 27 Sep 2017, 12:00am

These three components contribute to the high prices of the iPhone 8

While Samsung’s monopoly over the OLED supply led to the exorbitant pricing of the iPhone X, three other components are believed to be the cause of the price increase for the iPhone 8. 

According to research from IHS Markit, the three main components are the A11 processor, the new glass enclosure, and memory. IHS estimates that the A11 processor costs $5 more per unit while flash memory costs $6 more. The increase in NAND flash storage prices also led to the recent price revision of certain iPad Pro models. Other key components also led to the price increase such as the displays and camera modules. 

Taking into account the higher costs of these components, IHS claims the 64GB IPhone 8 will cost Apple US$247.51 to build. In comparison, the 32GB iPhone 7 costs Apple US$237.94. For the iPhone 8 Plus, Apple has to pay US$288.08 to build which is an increase of $18 from the iPhone 7 Plus.   

To make up for the increased production costs, Apple raised the prices of the iPhone 8 and 8 Plus this year. The 64GB iPhone 8 is priced at S$1,148 while the 32GB iPhone 7 had a launch price of S$1,048. The 64GB iPhone 8 Plus is priced at S$1,308 while the 32GB iPhone 7 Plus launched with a retail price of $1,248. 

Source: Bloomberg via 9to5Mac

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