Have you ever wondered why iPhone 7 price tag is so high? If so, you have come to the right place. Today we will show you the actual cost to build each iPhone 7! Let’s have a look!

iPhone 7 Price Tag: The cost of each component

So far Apple haven’t provided the price list of the components that form the iPhone 7 (it will be foolish if they do that). However, CNNMoney – the world’s largest business website, seems to have done lots of market research and finally comes up with a list of approximated price of each components. These price tags are based on the price of the equivalent components found in the market.

To be more specific, the logic board and the 4.7-inch display of iPhone 7 is the most expensive parts: they respectively cost $74 and $37. Then, it costs $26 and $22 to produce the 12MP/7MP camera combo and the case. The next one is the stereo speaker. It charges $11.5. The most surprising is the battery. iPhone 7’s 1960mAh cell costs only… $4. The price tags of other parts of the phone combining together is around $117.5.

So overall, Apple only has to spend $292 to build a complete iPhone 7. Meanwhile, the iPhone 7 price tag in the market ranges from $640 to $970, which is about 2 or 3 times higher! So what are the reasons behind this huge gap? Because they are Apple and this is iPhone? Actually, there is so much to consider more than just that!

iPhone 7 price tag: the software, the marketing and the resources

While it’s true that $292 is the money Apple spends to build each iPhone 7, we also have to consider the money they have to spend on getting the phone promoted or advertised. Moreover, it’s the software that raise the iPhone 7 price tag much higher than its original cost. It takes huge amount of money to build the iOs ecosystem as well as to spend on the facilities and human resources. If CNNMoney studies on Galaxy Note 7, we are sure that the gap between the original cost and the market price tag of that Samsung phone will also be surprising.