Big new iPhone brings Apple more profit

AP Photo/The Virginian-Pilot

AP Photo/The Virginian-Pilot

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.

The new iPhones went on sale Friday and address a key advantage rival Android phones have long had: size. The iPhone has been Apple's main source of profits and is expected to remain so for at least the next year.

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 $650. IHS estimates it costs Apple $200.10 for materials and manufacturing. The iPhone 6 Plus retails for $750 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.Apple CEO Tim CookApple WatchbusinessiPhone 6Science & Technology

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Outdoor dining, as seen here at Mama’s on Washington Square in North Beach in September, is expected to resume in San Franisco this week. (Kevin N. Hume/S.F. Examiner)
SF to reopen outdoor dining, personal services

San Francisco will allow outdoor dining and other limited business activity to… Continue reading

City College of San Francisco Board member Alan Wong (Courtesy photo)
CCSF board member tests positive for COVID-19 after National Guard deployment

Alan Wong spent eight days in Sacramento protecting State Capitol before Inauguration Day

Giants slugger Barry Bonds smiles as he makes a joke about McCovey Cove as the San Francisco Giants paid tribute to legend Willie McCovey at AT&T Park on Thursday, Nov. 8, 2018. (Kevin N. Hume/S.F. Examiner)
Ex-Giants star Barry Bonds again falls short of Hall of Fame

After striking out yet again in his bid to join Major League… Continue reading

Patients line up in their cars to receive a shot at The City’s first mass COVID-19 vaccination site at City College of San Francisco on Friday, Jan. 22, 2021. (Kevin N. Hume/S.F. Examiner)
Legislation would require SF to create a public COVID-19 vaccine plan — fast

San Francisco’s Department of Public Health would have to come up with… Continue reading

Ian Jameson (center) organized a group of tenant rights activists and assembled at the El Monte City Hall to demand that the City Council there pass an eviction moratorium barring all evictions during the coronavirus pandemic on Sunday, March 29, 2020. (Jason Armond / Los Angeles Times)
California would extend eviction protections to June 30 under proposal

Legislation released Monday would also subsidize rent for low-income tenants

Most Read