The True Cost of Apple's Latest iPhone 6S Smartphones

Photo Credit: IHS

Last weekend, Apple sold an record of 13-million units of their latest iPhone smart device. In many stores across the world, first examples of the Apple iPhone 6S and iPhone 6S Plus were promptly snatched-up by mobile technophiles. Featuring many operational upgrades over the previous device such as 3D Touch, the new edition iPhones are also equipped with a more power A9 processor, 12-megapixel and 5-megapixel cameras as well as a lighter, more efficient battery.

The rite of passage to Apple's new normal in mobility requires buyers to part with $649 US ($899 on the Apple Canada website) for the 16-gigabyte iPhone 6S. For $749 US or $1,029 Canadian, the Apple iPhone 6S Plus can fit in your pocket (providing it is a large enough pocket to fit the 5.5-inch touchscreen smartphone). Parting with a considerable amount of money for what is the Apple lifestyle, this movement obviously benefits the bottom line of a technology company ranked as the richest corporation in the world. Services such as iTunes, App marketplace and their new music streaming service are seen as market-leading cash cows succeeding in giving people hooked to their brand. However, it's also intriguing to note the amount of money Apple makes off the devices themselves.

Exactly how much does Apple stand to make with every latest generation iPhone sold? A recent report shared by information and analytic company IHS has shed some light on the actual cost of the new phone's hardware providing some level of insight to the profit margin of the iPhone 6S and iPhone 6S Plus.

According to IHS, the total cost of producing an 16-gigabyte Apple iPhone 6S Plus is $236.00 ($231.50 for the components and $4.50 for the assembly per device). Compared to the previous iPhone 6 Plus, the new version cost $16 more. Roughly $10 to the bill of material cost for the new iPhone is associated with the new Taptic Engine used to reproduce a sensory feeling when the device is touched. The following illustrates a partial breakdown of costs attached to manufacturing the latest smartphone:

Highlight Hardware Costs for Apple iPhone 6S Plus:

5.5-inch touchscreen hardware with Retina Display: $52.50
Apple A6 64-bit processor: $22.00
16-gigabyte flash memory storage: $5.50
Li-Polymer battery: $4.50
Front and rear cameras: $22.50
Wireless/Bluetooth Technology: $6.00


Referring the 16-gigabyte flash memory storage unit (supplied by top-ranked Korean tech company SK Hynix) above, The IHS report states production of a 64-gigabyte iPhone 6S Plus is just $17 US more per device. Interestingly enough, when the 64-gigabyte Apple iPhone 6S Plus lands in retail environments, the cost difference is $100 US.

Keep in mind, the costing report leaves out one item that is pivotal to any Apple device. The development costs of the software, including the IOS 9 basis for the smartphone.

In the case of automobiles, buyers can often use the differential between the dealer invoice and the MSRP (Manufacturer Suggested Retail Price) to negotiate a purchase price. Even though the Apple iPhones feature mobility as well as a high cost, tech-savvy buyers have no hope applying any money-saving buying strategies.

Hammacher Schlemmer Spotlight: The One Step Photograph and Slide to iPhone Converter

Photo Source: Hammacher Schlemmer

If you were born in the last decade, digital photography could be the only form picture-taking familiar to you. Though digital cameras have effectively led to the gaining endangerment of film photography, a full century of images recorded to film negatives, photo paper and slides contain too many precious images worth ignoring. Hammacher Schlemmer has added a device to their product catalogue targeted at saving great individual or family moments to one of the world's most popular smartphones, the Apple iPhone.

Called the One Step Photograph and Slide to iPhone Converter, this scanner dedicated for use with a Apple iPhone 4 and iPhone 4S device has the ability to digitally perserve some historically popular methods for storing images. Photoographs 3x5 inch and 4x6 inch sizes, 35mm slides as well as 135 film negatives can be quickly converted to an Apple iPhone attached to the One Step Photograph and Slide to iPhone Converter. Prior to being stored as a JPEG on an Apple iPhone, a user can utilize a free app to adjust attributes such as colour and size of the digital image.

Powered by 4 AA batteries, the One Step Photograph and Slide to iPhone Converter can operate without a computer or the need for an AC power supply.

The One Step Photograph and Slide to iPhone Converter retails in the Hammacher Schlemmer catalogue and through their on-line store for $59.95 US.

Survey Finds 30% of US iPhone Users Damaged Devices in Past Year

Photo Credit: Apple

On Friday, the newest generation of Apple's smartphone will be dropped into the hands of the first eager customers who will drop just under $700 Canadian to navigate the iPhone 5's Retina display touchscreen. With an average 23 Apple iPhone 5s being pre-ordered every second during the first 24 hours, the new device will join a global mobile environment already flooded with earlier iterations of the Apple's handheld that redefined the term 'smartphone' since 2007. While the sale, resale, phone plans and accessory options have conjured up a self-contained Apple economy, there has also been another source where a major dollar figure relates to the iPhone over six generations of acceptance. The number 5.9 billion dollars US is attached to the damage of pricey Apple iPhone devices in the United States alone.

A number compiled through the assistance of comScore estimates by retail warranty supplier SquareTrade (who may have a vested interest in publishing some key figures in respect to one of the most popular smartphone devices on the market) equated the 5.9-billion dollar cost for damaged iPhones to more than twice the amount spent for toilet paper in the United States. The overall cost estimate takes into account repair, replacement and insurance deductibles to Apple iPhone products since first sold in 2007. Damage to Apple iPhone devices is recorded as 10 times more likely than either through loss or theft.

Presenting a snapshot into the life of an Apple iPhone, SquareTrade's survey took a sample group of 2,000 Apple iPhone users and discovered that 30% have stated that their devices have been damaged in a past 12-month period. The most prevalent occurrences for iPhone damage includes being dropped by hand or lap, falling into a body of water (lake, swimming pool or even a toilet), having fluid spilt on the device and being knocked off a table. The survey also revealed that half of iPhone users under the age of 35 years old have encountered a situation the resulted in harm coming to their Apple smartphone device. Since a sizable portion of Apple's market appeals to younger users who like to think their iPhone into risky territories, 50 percent loss for the under-35 demographic is not too much of a surprise.

SquareTrade has also recorded data from users who have chosen to continue operating their Apple iPhone devices even after sustaining harm. 11 percent of survey participants indicate they have proceeded to use their iPhone when the screen was cracked and another 6 percent admitted to taping their devices as a favourable remedy over costly repairs or replacement. These damaged Apple iPhone devices will undoubtedly receive far reduced trade-in prices if accepted at all. On the Ebay Instant Sale site, a fully-functioning 16-gigabyte iPhone 4S with USB connecting cable will garner $310.80 in Canadian funds. If in fair condition but still operational, a Apple iPhone 4S will only fetch $155.40 during a trade-in. Interestingly enough, a non-functioning 16-gigabyte iPhone 4S device in poor condition will still be worth $20.00 to Ebay through the Staples Canada supported Ebay program.

Such as the case with many other cell phone and smartphone devices, the steady aftermarket is devoted to providing accessories capable of protecting against the before-mentioned damage. In the case of SquareTrade, a warranty for an iPhone device allows for a user to easily repair or replace their device. In the United States, SquareTrade offers a 2-year protection plan for $99 and a 3-year warranty for $129. A $50 deductible would also need to be paid when a user files a claim. Damage against an accidental damage to a smartphone device is fairly rare in the marketplace. AppleCare is also in place as an extended warranty for iPhone devices but does not cover damages such as a cracked screen or water.

SquareTrade CMO Ty Shay words in regards to the already $5.9 billion industry was served with a cautionary warning predicting growth in the damaged iPhone economy. "As smart phones continue to improve, they become more tightly integrated into our busy lives leaving them vulnerable to accidents around the clock," said Shay who also expressed intrigue for what the iPhone 5 device with its narrower profile and larger screen will affect the trend.