Apple iPhone SE is all set to be launched on April 8. Their first attempt at making a small, yet powerful iPhone garnered positive reviews from tech enthusiasts. But reviewers remained undivided as far as the pricing was concerned.

In India, the iPhone SE will carry a price tag of Rs. 39,000 for the 16 GB model and Rs. 49,000 for the 64 GB model. While Apple’s argument for the premium pricing is backed by good hardware specs, there are those who think the older design is a bit of a let down. In any case, those who want a smaller iPhone, don’t really have an option other than opting for the SE.

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But a new report by research firm IHS, who are renowned for determining the manufacturing cost of new hardware, might make the purchase decision a tad bit more tricky.

IHS analyst Andrew Rassweiler also stated that the new phone is priced specifically to encourage users to opt for the 64 GB variant. They estimate that Apple will make an additional profit of $89 on the 64 GB variant as compared to the 16 GB one.

Many parts of the iPhone SE have been recycled from previous devices too. In addition, the display which cost $41 back in 2013, is now for less than half the price at $20. With the iPhone 5S, the display was made by Sharp or JDI, but this time around, LG is Apple’s vendor.

Apple also saved on manufacturing costs by recycling parts from existing models and not upgrading the SE to a full HD display.

Image source – @iamrajaramm (Twitter)