You Pay 70k To Buy An iPhone 7 But You'll Be Shocked To Know Its Actual Manufacturing Cost

You Pay 70k To Buy An iPhone 7 But You'll Be Shocked To Know Its Actual Manufacturing Cost!

Apple Company has once again disturbed the whole mobile industry market by launching its two brand new iPhones – iPhone 7 & iPhone 7 Plus. In India, iPhones are not just usually renowned for its specification but for its price tag too. Paying a hefty 80 freaking Thousand Rupees for a phone which is worth an average citizen’s two month salary is indeed not a Joke ! !

The most objectionable feature for which iPhones have always been criticized is its PRICE TAG. Are they worthy enough for 70-80 Thousand Rupees ?

Well, we can’t miss out the fact that the newest iPhone is loaded with A10 Fusion Chip Processor which is 40% faster than its predecessor, dual telescopic lens for double zoom, technologies for water and dust resistant ( IP-67 Rating) and the new stereo speakers which are quite loud. Although there is no headphone and physical home button, but that won’t help to cut down at the price tag of this year’s new iPhone ( Desi Mindset).

Well, we can empathize with the feeling which you might be going through. Having no headphone jack and physical home button should have taken the selling price of iPhone down, but that’s not how the things work. Let us just break down the iPhone’s 7 component in simple parts and calculate its cost price.

Screen – Rs 4000

Battery- Rs 300

Cameras- Rs 1500

Logic board – Rs 5000

Speakers- Rs 800

Casing -Rs 1300

Other parts- Rs 8000

Total – Rs 20,900

Now the other parts include materials like tiny little sensors, baseband and so on. So the actual cost for making an iPhone 7 is roughly around Rs 20,900. The expected cost of 32 GB iPhone 7 variant is Rs 62,000 having a screen size of 4.7 inch, 2GB Ram as compared to iPhone 7 Plus having screen size of 5.5 inch and 3 GB Ram along with two camera lens. iPhones 7 Plus 32 GB Variant is expected to be around Rs 72,000.

Is it really justified to pay such a big amount of money for an entity which is 3 times more expensive than its actual price ? THINK ABOUT IT.

Now before you start bashing up Apple Company, let us just dive deeper into it. We didn’t come up with calculating the money spent in RESEARCH AND DEVELOPMENT. The technologies like 3D Touch and New Taptic Engine are indeed the results of efforts laid down by many innovators in R&D. Buying the patents of such technologies are indeed big and expensive which the Apple company certainly seems to earn through its high product price.

Another reason for iPhones being expensive is because of the heavy taxes and custom duties imposed on them.

I am not a ‘TAX EXPERT’, but this the least that I could understand and share it with you. What do you think about the whole subject, share your thoughts in the comment section below ! !