The iPhone 7 only cost Apple $225 to produce, according to new estimate

The calendar has rolled over into Autumn, and that mean that Apple has released yet another iteration of their most popular product, the iPhone. This year we are getting the (kinda-sorta-not-really) seventh generation of the device, and unsurprisingly, they have been flying off the shelves. As an AT&T customer, I can't get one online until early December, so I'm left to dream about what could be until then.

The iPhone is not a modest investment either, with the base iPhone 7 retailing for $649 (though having a contract can help you pay it off in baby steps). So with that in mind, you might be wondering, how much does Apple spend to make one of these phones. Well, given that you've already read the headline, I don't need to tell you. The data was compiled by the research firm, IHS, who took apart the phone piece by piece and examined its contents, ultimately determining that the parts were worth $218.90 plus $5 in manufacturing costs.

While it might seem like a small amount, this is the most that the company has ever spent to manufacture any of their phones, as last year's iPhone 6S came out to $211.50.  One of the reasons for the increase in cost is the fact that the phone's base memory capacity is now 32GB.  

Here are the biggest reasons for the increase:

• Base storage increase to 32 GB = $16.40 per phone
• The chip = $26.90
• The phone's new hi-res display = $43
• The dual cameras = $19.90

IHS has still yet to examine the iPhone 7 Plus, so it's probable that we may see even higher costs associated with that one. The iPhone 7 released back on September 7th, 2016.

Source: Business Insider