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iPhone 8's price increase is due to these three components

By Michael Low & Cookie Monster - on 27 Sep 2017, 9:45am

iPhone 8's price increase is due to these three components

While Samsung’s monopoly over the OLED supply led to the exorbitant pricing of the iPhone X, three other components are believed to be the cause of the price increase for the iPhone 8

According to research from IHS Markit, the three main components are the A11 processor, the new glass enclosure, and memory. IHS estimates that the A11 processor costs US$5 more per unit, while flash memory costs US$6 more. The increase in NAND flash storage prices also led to the recent price revision of certain iPad Pro models. Other key components also led to the price increase, such as the displays and camera modules. 

Taking into account the higher costs of these components, IHS claims the 64GB iPhone 8 will cost Apple US$247.51 to build. In comparison, the 32GB iPhone 7 costs Apple US$237.94. For the iPhone 8 Plus, Apple has to pay US$288.08 to build, which is an increase of US$18 from the iPhone 7 Plus.   

To make up for the increased production costs, Apple raised the prices of the iPhone 8 and 8 Plus this year. The 64GB iPhone 8 is priced at US$699, while the 32GB iPhone 7 had a launch price of US$649. The 64GB iPhone 8 Plus is priced at US$799, while the 32GB iPhone 7 Plus launched with a retail price of U$769. 

Source: Bloomberg via 9to5Mac.