A teardown by tech website Chipworks on Apple's newest iPhone model, the four-inch iPhone SE, revealed that the smartphone contains several parts that can also be found in the iPhone 5, iPhone 6 and iPhone 6s models.
For example, the A9 chip powering the iPhone SE was shown to be made by supplier TSMC in August or September of last year, which indicated that the component was made for the iPhone 6s and not for the new model. Other identical parts with the iPhone 6 and iPhone 6s include the smartphone's audio hardware and modem, while components shared with the iPhone 5s include its display and touchscreen chips.
Based on the teardown, Amit Daryanani, an analyst for RBC Capital Markets, claimed in a memo that was obtained by Apple Insider, that the cost for the manufacturing of one iPhone SE comes to about $260.
The iPhone SE retails for $399, and with that manufacturing cost, Apple's profit margin for the smartphone comes to around 35 percent. This figure is a low one for the company, compared with the estimated mid-40 percent profit margin for other smartphones such as the iPhone 6s and the iPhone 5s.
The bill of materials for the iPhone SE is 22 percent cheaper compared to that of the iPhone 6s, Daryanani said, suggesting that Apple could have re-entered negotiations with suppliers to come away with lower prices for surplus parts that were made for the iPhone 6s.
However, despite the lower profit margin, the iPhone SE is still expected to provide a boost to Apple's revenue and profit. The smartphone could provide up to $6.8 billion in revenue and earnings per share of 23 cents to Apple.
Online sales figures for the iPhone SE, as released by Slice Intelligence, revealed that the smartphone could be helping Apple draw away customers from Android smartphones.
The iPhone SE sold much fewer units over its first weekend compared with the iPhone 6s, but it was able to attract more users to switch to iOS from the rival Android operating system.
In addition, the iPhone SE could help Apple expand its reach among more mature users, as many who purchased the smartphone were male, older and less educated compared with previous buyers of iPhones.
