Did you know the actual cost of the iPhone 6S Plus is around Rs 15,000?

According to a report by Re/Code on a tear down conducted IHS Technology, Apple’s latest release iPhone 6S and iPhone 6S Plus cost about a third to Apple of the price you pay for it. The estimate price were evaluated after an elaborate process of disassembling the iPhone 6S Plus and taking a closer look at the internal components of the smartphone to gauge the cost of its material and manufacturing.

The teardown conducted on the iPhone 6S Plus by IHS technology revealed that the smartphone costs about $236 to make and assemble (about Rs 15,500). Which means, that retail price of the smartphone, which is $749 (Rs 50,000 approx), is almost three times what it actually costs Apple to manufacture it. This also means that in the cost of one iPhone that you buy, Apple manufactures two more iPhones.

Although Re/Code could not teardown the iPhone 6S, it estimated that it would cost about $20 less than the iPhone 6S Plus, around $212 (which is Rs 14,000 approx).

However, IHS Technology also pointed out that the estimated cost does not account for costs associated with the sales, which include the shipping, warehousing, research and development, along with the cost of advertising and marketing the product.

Even though there’s huge margin of cost that hasn’t been accounted for in this estimate, it is still clear that the profit fringes that Apple keeps are quite high. Having said that, despite of not maintaining an egalitarian doctrine, Apple continues to offer its products for a niche crowd, and the consumers, aware of the strikingly high prices of Apple products, seem to happily accept what it vends.