Chipworks published their teardown of the iPhone 7 (not the dual-camera 7 Plus) detailing what each part costs, including the iPhone 7 camera. At $275 for parts, the iPhone comes in about as expected.
For the camera module, Apple is shelling out $26, or around 9.5% of the total bill for parts.
The iPhone camera has become one of the most popular cameras in the world. Sure, professional photographers may bristle at the notion it has usurped their $15,000 setup, but smartphone cameras are everywhere.
Studies have shown 90% of owners use their phones as cameras. Seems low considering everyone immediately whips out a smartphone to take a picture of damn near anything. Smartphone photography only trails texting in usage among owners. Rumor has it; the phones still make voice calls. Research is still out….
The camera on the phone is said to be the third most important consideration among consumers when shopping for a new smartphone.
“Cameras have become such an important feature of any smartphone,” Chipworks writes, “and maybe even more so for the iPhones, Samsung Galaxy phones, now even Huawei is jumping all in with their dual camera on their latest flagship the Huawei P9.”
Adding up the rest of the $275 bill includes a $4 battery, $37 for the touchscreen and storage/memory hit $38. Not bad for margins considering the actual price of the phones for consumers.
$26 iPhone 7 Camera?
Of course, there’s a but. While the camera may ring up for $26, it doesn’t represent the actual cost for Apple. The teardown doesn’t factor in the other costs for the iPhone 7. Research and development. Manufacturing. Logistics. Marketing. You didn’t think the disembodied Jony Ive voice was cheap, did you? Not to mention the cost of courage…
Factoring in all the various components of the iPhone adds up to $500-$600 per phone. It leaves Apple with a healthy 41% margin based on last quarter’s SEC filings. There’s a reason the company has a Scrooge McDuck vault of cash offshore.
It makes for a cool headline, but there’s a lot more that goes into the production of the iPhone 7 and any product we use. Though a $26 full-frame DSLR? We await the screwups on e-commerce sites this holiday season.