IHS Teardown Analysis: New iPhone 6S and 6S Plus Offer Improved
Durability for Longer Life and Improved Re-Sale Value
Upgraded components in the new iPhone 6S Plus cost $16 more than
the components in the earlier iPhone 6 Plus. The bill of materials
(BOM) for an iPhone 6S Plus equipped with 16 gigabytes (GB) of NAND
flash memory costs $231.50, according to a preliminary estimate
from IHS Inc. (NYSE: IHS), the leading global source of critical
information and insight.
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After basic manufacturing costs are added, Apple’s total cost to
manufacture the iPhone 6S Plus rises to $236. The unsubsidized
price for a 16GB iPhone 6S (with a 4.7-inch diagonal screen) is
$649, while the unsubsidized price for the 16GB iPhone 6S Plus
(with 5.5-inch diagonal display) is $749.
“3D Touch and Apple’s Taptic engine are among the more notable
feature upgrades found in this latest round of iPhones,” said
Andrew Rassweiler, senior director of cost benchmarking services
for IHS Technology. “With each generation the company makes
measured, incremental technology improvements to its iPhone line,
and this time around those changes are increasing Apple’s per-unit
material cost.”
iPhone 6S Plus Cost Summary Direct Material Costs(Component
Costs) $231.50 Conversion Costs(Assembly / Insertion/
Test Costs) $4.50 Total Cost(Direct Materials & Manufacturing)
$236.00
Improved durabilityPossibly due in part to Apple’s new
iPhone financing program, the new iPhone 6S and 6S Plus are
designed to be stronger and more resilient, which means it can last
longer and better maintain its resale value. Several upgrades
combine to effect this improvement, including a harder 7000-series
aluminum case, an upgrade to the latest and strongest Gorilla Glass
4 cover glass, as well as additional gaskets and seals that improve
water resistance.
Processor upgradeApple has upgraded the core processor,
from their A8 series to the more powerful A9 series Apple touts as
having a 70 percent faster CPU performance. The processor also
integrates M9 motion co-processor functionality. The previous
generation iPhone 6 and 6 Plus featured an A8 processor, as well as
an M8 motion co-processor that was a separate integrated circuit
supplied by NXP Semiconductor. In this new generation, the M9
exists within the A9 processor, and the stand-alone integrated
circuit is no longer needed to perform this function.
3D Touch and the Taptic EngineApple's proprietary Taptic
Engine, a system also found in the Apple Watch, is a haptic user
interface technology that uses vibratory solenoid to reproduce
physical a vibration or tapping sensation when the device is
touched. “The 3D touch system is novel, and when combined with
Apple’s Taptic Engine, these features add about $10 to the total
bill of materials cost,” Rassweiler said. “Haptic systems are
fairly low-tech and forms of haptic feedback like this have been
implemented for years in other devices using traditional vibration
motors, but the iPhone’s implementation of this feature is
unique.”
Improved wireless modem and WiFiThe iPhone wireless modem
has evolved from a CAT 4 (Qualcomm MDM9625) to a CAT 6 (Qualcomm
MDM9635) modem that provides better data throughput. Furthermore,
like preceding iPhone designs, the iPhone 6S and 6S Plus feature
support for a number of total long-term evolution (LTE) bands in a
single device, allowing Apple roll out its products globally,
without other physical variations to the wireless section of its
devices. “Apple distinguishes itself by supporting all wireless
bands in a single hardware version of the iPhone, which really
helps Apple avoid having to manage so many different variations of
the iPhone 6S line,” Rassweiler said.
For the first time in an iPhone, Apple is using WiFi/WLAN with
2x2 MIMO, which has been implemented previously in other
smartphones, including the Samsung Galaxy S5. Multiple input and
multiple output (MIMO) antenna design helps improve WiFi reception
and performance speed.
Upgraded camerasApple has upgraded its main camera from 8
megapixels (MPs) in its earlier iPhone 6 to 12 MPs in the new
iPhone 6S and iPhone 6S Plus. The front-facing camera has also been
upgraded from 1.2 MP to 5 MP. “These are major upgrades for the
iPhone, which has often lagged behind other leading edge flagship
phones, where camera resolution is concerned,” Rassweiler said.
“Apple’s focus has always been on image quality and camera speed
over megapixels, but the iPhone is now on par with its rivals, in
this regard.”
Extended battery lifeThe battery in the iPhone 6S Plus is
slightly smaller than the battery in the earlier iPhone 6 Plus;
however, Apple has added new power-saving software features, as
well as improved power-management components and silicon process
shrinks (e.g., a processor built using the 14nm or 16nm or process
nodes typically uses less energy and current than a processor built
in 20nm node).
NAND flash memoryAs NAND flash memory continues to make
up an ever-smaller percentage of overall BOM costs, its
monetization continues to increase Apple’s profits. A 16 GB flash
memory now costs Apple less than $6 per unit.
“NAND Flash is now so cheap it’s almost irrelevant, but Apple
monetizes this difference with consumers, to the tune of $100 for
each additional step up in memory capacity,” Rassweiler said. “For
example, a 64 GB iPhone now costs Apple about $17 more to make than
a 16 GB iPhone, but Apple charges iPhone buyers $100 more for the
increased memory. This is part of Apple’s ongoing strategy to
improve profits by selling a product mix that is heavier in the
higher-end iPhones.”
For information about subscribing to IHS teardowns and other
reports, contact the sales department at IHS in the Americas at
(844) 301-7334 or AmericasLeads@ihs.com; in Europe, Middle
East and Africa (EMEA) at +44 1344 328 300 or
technology_emea@ihs.com; or Asia-Pacific (APAC) at
+604 291 3600 or technology_APAC@ihs.com.
Top Cost Drivers
Itemized Components MfgName Description
Total Cost Display Display / Touchscreen Module -
5.5" 1920x1080 IPS Retina Display, w/ 3D Touch $52.50
IC
Content Apps Processor APPLE INC Apps Processor - Apple
A9, 64-Bit, w/ Embedded M9 Motion Coprocessor $22.00
Baseband QUALCOMM Baseband Processor - Multi-Mode $13.00
Memory DRAM SK HYNIX SDRAM, 2GB, Mobile DDR4, PoP $17.00
NAND (eMMC, MLC, …)
SK HYNIX
Flash, 16GB, NAND $5.50
Power Management Ics Apps Processor
/ Other PM DIALOG SEMICONDUCTOR Power Management IC $3.00 Other PM
QUALCOMM Power Management IC $1.00 Rest of PM $5.50
RF &
PA RF Transceiver QUALCOMM RF Transceiver - Multi-Mode,
Multi-Band $3.00 Front End & Other $12.00
User Interface
Ics Total UI BOM Cost (includes the following ICs) $18.00 Audio
Codec CIRRUS LOGIC Audio Codec Audio IC CIRRUS LOGIC Audio IC NFC
Controller NXP NFC Controller Accelerometer / Gyroscope
Accelerometer / Gyroscope, 6-Axis Barometric Pressure Sensor BOSCH
SENSORTEC GMBH Barometric Pressure Sensor Electronic Compass
Electronic Compass
BT / WLAN Total BT / WLAN BOM Cost
(includes the following) $6.00 BT / WLAN Module USI BT / WLAN
Module, IEEE802.11a/b/g/n/ac, Bluetooth 4.2 FEM SKYWORKS FEM
Battery Pack Battery
SUNWODA ELECTRONIC CO
Battery, Li-Polymer, 3.8V, 2750mAh $4.50
Box Contents $4.00
Cameras 12MP OIS / 5MP $22.50
Other Mechanical /
Electro-Mechanical
$42.00
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of insight, analytics and
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Businesses and governments in more than 150 countries around the
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and employs about 8,800 people in 32 countries around the
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