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Friday 26 September 2014

$749 iPhone 6 Plus Costs Apple Just $215.60 to Make: IHS

Apple's largest iPhone is selling for $100 more than its other new model, but an outside research firm estimated Tuesday that it costs Apple only $15.50 more to make the more expensive version.
Apple said it sold more than 10 million of the new iPhone 6 and iPhone 6 Plus models in their first three days on sale. Both have larger screens than earlier iPhone models, and analysts say consumers like the new, bigger sizes. The Plus has a 5.5-inch screen, as measured diagonally, while the regular iPhone 6 is at 4.7 inches

Apple will make more profit on the Plus version, according to a report from research firm IHS Technology. The full, no-contract price for the 16-gigabyte iPhone 6 is $649. IHS estimates it costs Apple $200.10 for materials and manufacturing. The iPhone 6 Plus retails for $749 without a contract, but IHS says it costs Apple $215.60.

With a two-year service contract with a wireless carrier, a 16-gigabyte iPhone 6 costs consumers $200. An iPhone 6 Plus costs $300 with a contract.

The Plus model also has a bigger battery and a slightly more expensive camera than the regular iPhone 6, according to IHS.

Apple didn't immediately respond to a request for comment on the report. The Cupertino, California, company usually doesn't disclose details of its manufacturing costs.

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