Your $799 iPhone 8 Plus has $288 worth of components in it

IHS Markit's annual cost breakdown of the new iPhones suggests that making an iPhone 8 Plus runs about $17 more than the 7 Plus.

Lori Grunin Senior Editor / Advice
I've been reviewing hardware and software, devising testing methodology and handed out buying advice for what seems like forever; I'm currently absorbed by computers and gaming hardware, but previously spent many years concentrating on cameras. I've also volunteered with a cat rescue for over 15 years doing adoptions, designing marketing materials, managing volunteers and, of course, photographing cats.
Expertise Photography | PCs and laptops | Gaming and gaming accessories
Lori Grunin

The analytics company IHS Markit on Tuesday issued its annual teardown of iPhone production costs, and if the estimate is correct what impresses me most is that the iPhone 8 Plus -- with 32GB more memory, a more powerful processor, wireless charging and a slightly improved camera -- only costs about $17.80 more to make.


IHS Markit's iPhone 8 Plus cost breakdown. (Click to see at full size.)

IHS Markit

While you might see (or emit) gasps of outrage at the thought that over half the price of the phone isn't... stuff... it actually makes sense given what I suspect is Apple's huge cost overhead of intangibles. (A fancy new HQ, for a start.) 

Plus, as long as the iPhone retains its tech je ne sais quois, you'll be paying a zeitgeist premium for it.

Another interesting note from the company's report is that it estimates the cost of manufacturing has increased by about $0.60; given the addition of the back glass, wireless charging circuitry and so on, that's unsurprising.