The teardown, executed by research firm IHS and shared with Re/code, is based on an analysis of the parts used in each model and an estimate of the labor involved ($4 to $4.50 for each device.)
IHS found the costs range from $200 to $247 for iPhone 6 models that sell for $649 and $849 without a contract. The more expensive models sport 128 GB of storage space, netting Apple a slightly higher margin.
Costs for the iPhone 6 Plus run from $216 to $263 for models that sell for $749 and $949 without a contract. As Re/code reports, Apple has improved its profit margin for its phones. While the iPhone 5 and the iPhone 5S both provided the same margin of around 69%, the first iPhone in 2007 gave Apple a 55% margin.
The combined display and touchscreen take up much of the material cost. The iPhone 6’s screen costs Apple $45 and the iPhone 6 Plus’ screen costs $52.50, the analysis shows.
The analysis doesn’t take into account other costs involved, including advertising, marketing and distribution.
In April, IHS reported that a Samsung Galaxy S5 with 32GB costs the company $251.52. That phone sells for $599, giving Samsung a margin of around 58%. The Moto X costs $226.
While a margin of 69% is very healthy, a pair of $300 Beats headphones from Apple cost anywhere from $14 to $40 to produce, generating a margin ranging from 87% to 95% for the company.