Build Up of Component Costs and Comparison to Previous Models in a Cascade Chart

IPhone SE Component Costs

At $399, the new iPhone SE is significantly less expensive than other available models.  Apple was able to achieve this price by using a mix of components from the previous three generations of iPhones.  A product teardown conducted by IHS shows that the SE has the display from the two generation old 5S and the processor from the current generation 6S.  The cascade chart below presents the component cost and component origin information:

iPhone SE Component Costs

With the cascade chart, I can build-up the iPhone component cost into its total cost.  I can also link total cost to price and gross profit by adding these to the right of the component costs in the chart.  Finally, I can provide supplemental information on each component in the data table below the chart.  I used the character Alt 0252 in the Wingdings font to add the check marks to the data rows.  I used a PowerPoint shape and text box to add the description to the right of the data table.  It’s easier to add these elements if you first right-click on your Mekko Graphics chart and select “Send to Back” from the menu.  Here is the chart in SlideShare to download and edit using Mekko Graphics: