Apple Is Overcharging You By $400 For The iPhone 7, New Research Reveals

Finally got your hands on the new iPhone 7, set it all up and arranged your apps just how you like? Good.

Now pick up the phone and throw it against a wall -- it's worthless.

Well, technically it's not worth nothing, just a hell of a lot less than what Apple is charging you.

According to new research by analytics company IHS Markit, the iPhone 7 with a 32GB memory costs $224.80 to make.

But it has a price tag of $649 for chumps like me and you.

A spokesperson for the firm explained how they came about these findings,

The bill of materials (BOM) for an iPhone 7 equipped with 32 gigabytes (GB) of NAND flash memory carries $219.80 in bill of materials costs. After $5 in basic manufacturing costs are added, Apple's total cost to manufacture the iPhone 7 rises to $224.80. The unsubsidized price for a 32GB iPhone 7 is $649.

It's a higher markup than the previous iPhone models. Part of the inflated price this year is to do with materials used.

Apple had to make everything water-resistant. They also dropped in a bigger battery, taking up space where the headphone jack once was.

On top of this is another unlikely price-driver: The jet-black finish.

The report explained it is a "lower yielding, time-intensive manufacturing step that adds cost, as well as considerable value."

Andrew Rassweiler, senior director of cost benchmarking services for IHS Markit, said,

Total BOM costs for the iPhone 7 are more in line with what we have seen in tear-downs of recent flagship phones from Apple's main competitor, Samsung, in that the costs are higher than in previous iPhone teardown analyses. All other things being equal, Apple still makes more margin from hardware than Samsung, but materials costs are higher than in the past.

A breakdown of the iPhone 7 Plus has yet to be done. But you can bet your bottom dollar this model is even more of a rip-off.