Apple iPhone Component Costs [Updated]
Market analyst group iSuppli put out some preliminary numbers as the component costs for the Apple iPhone. Typically, these component breakdowns are performed on a physical device, so this analysis was done with a best-guess on many of the suppliers.
According to the analysis, the manufacturing cost for each 4GB iPhone is about $230, offering Apple nearly a 50% gross margin on the iPhone. This is reportedly in line with previous Apple margins in the iMac and iPod nano, and suggests there is room for price drops in the future. Note that this price only includes raw hardware costs, excluding manufacturing and research/development costs.
Of interest, the supplier of the 3.5" Touch screen remains a mystery, but iSuppli estimates its cost at $33.50.
Update: Spiegel.de reports that Balda is the supplier for the touch screens.
According to the analysis, the manufacturing cost for each 4GB iPhone is about $230, offering Apple nearly a 50% gross margin on the iPhone. This is reportedly in line with previous Apple margins in the iMac and iPod nano, and suggests there is room for price drops in the future. Note that this price only includes raw hardware costs, excluding manufacturing and research/development costs.
Of interest, the supplier of the 3.5" Touch screen remains a mystery, but iSuppli estimates its cost at $33.50.
Update: Spiegel.de reports that Balda is the supplier for the touch screens.
Top Rated Comments
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66 months ago
wow so their profit isn't even that huge! considering that "included in the price is a 2-year plan", whatever that means...
66 months ago
wow so their profit isn't even that huge! considering that "included in the price is a 2-year plan", whatever that means...
um, included in the price is the DISCOUNT of signing for a 2 year plan.
thats the correct wording.
you arent getting 2 years of service for $600, though it seems like thats the wording presently.
66 months ago
So really, Cingular is probably paying $600 and $700 for a $230 phone and a lil more for the other. Apple is gonna make tons of money on these things...At least we don't have to pay full price, as we get that 2 year contract discount :rolleyes:
66 months ago
that really is a large profit margin. This means that even if they sold without the 2 year contract, which usually makes phones a heck of a lot cheaper to buy, they will be making a killing off of them. Maybe once we get the actual device out we will get a better estimate on the manufacturing costs. But as it stands now, they could sell an unlocked version of the phone for 300 dollars and still make like 70 dollars off of each one. Thats what im waiting for.
66 months ago
However, one has to remember all the costs involved with the production of the phone. All the developers that made the software, all the people that have taken years to develop the phone and the designers. So actually, its probably not a high a profit margin as we think, taking off all the R&D costs.
66 months ago
But, this does'nt account for their R&D. What does it cost to have a team of engineers, designers, developers, (developers, deveoplers) and lawyers running for 2.5 years.
66 months ago
Glad I am not buying one until it has the Sprint name and logo on it. :D
Maybe by then the phone will be replaced by one with newer features that are way beyond my comprehension. Then I can get the regular iPhone at a discount price in the Apple Store reburb bin. Not the 32GB model with brainwave recognition. :D
Maybe by then the phone will be replaced by one with newer features that are way beyond my comprehension. Then I can get the regular iPhone at a discount price in the Apple Store reburb bin. Not the 32GB model with brainwave recognition. :D
66 months ago
But, this does'nt account for their R&D. What does it cost to have a team of engineers, designers, developers, (developers, deveoplers) and lawyers running for 2.5 years.
that is a good point....but it's still pretty expensive.....
66 months ago
thats NOT high. Yes, computers is generally an area where margin isnt very high (buy from newegg.com, theyre getting about 11% margin. i know, i worked there). 50% sounds like alot, but when u count R&D time, thats very little.
Compared to the normal iPod, the 8gb nano costs $90, and they sell it for $250. the R&D costs arent as high either. the Nanos make the most money for them in terms of percentage.
cz
Compared to the normal iPod, the 8gb nano costs $90, and they sell it for $250. the R&D costs arent as high either. the Nanos make the most money for them in terms of percentage.
cz
66 months ago
These cost analysis' are the dumbest thing ever. Do they take into consideration R&D? Or anything else beside raw component cost? And it's not just the iPhone, these numbers are equally being pulled out of someones butt for the PS3, 360, Wii, etc. etc.
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