Apple’s iPhone SE, which will release in India on April 8 at a price of Rs 39,000, cost the company around $160 or around Rs 10,653 to manufacture reveals a teardown by research firm IHS. Apple has priced the 16GB version of the iPhone SE at $399 in the US, so the company appears to be making a $230 profit for the 16GB version alone.
It should be noted that when Apple has first announced the iPhone SE for India, the price was given as Rs 30,000, which was later revised to Rs 39,000.
According to the IHS teardown press statement it was revealed that the iPhone SE has a design similar to the iPhone SE.
“The size and resolution of the display are the same between the iPhone SE and iPhone 5, though the mechanical components such as the enclosure have been slightly modified,” said Andrew Rassweiler, senior director of cost benchmarking services at IHS.
It does share some iPhone 6 components including the same radio-frequency (RF) components used for LTE connectivity, Qualcomm (MDM9625) solution along with the same 1.2 megapixel secondary camera, says IHS.
IHS teardown also confirms that the iPhone SE has the same “A9 applications processor with dynamic random-access memory (DRAM) to support interactive gaming and other processor-intensive applications” as the iPhone 6s and the rear camera module.
IHS estimates that Apple makes approximately $89 in incremental profit for each iPhone SE 64GB sold when compared with the iPhone SE 16GB.
“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 64 gigabyte SE model,” said Wayne Lam, principal analyst, mobile devices and networks, IHS Technology.
According to IHS the “costliest subsystems in the iPhone SE is its four-inch Corning Gorilla Glass display with integrated, in-cell touch sensing.” It also found an LG Display panel in the iPhone SE in this teardown.