Apple Reduces Build Cost of CDMA iPhone With Design Tweaks

143625 verizon iphone feb 10th 300

Research firm IHS iSuppli today announced that it has completed its full teardown of the CDMA iPhone that launched on Verizon this week, estimating that the device carries a bill of materials cost of about $171.35, or approximately 9% less than the original iPhone 4.

Despite having nearly the same functionality and a similar bill of materials (BOM) as the previous model, the new code division multiple access (CDMA) version of the iPhone 4 carried by Verizon Wireless includes significant changes in its design and component selection, IHS iSuppli teardown analysis indicates.

The latest version of the iPhone 4 carries a BOM of $171.35, down from $187.51 for the previous model, based on a preliminary pricing estimate issued in June. When manufacturing expenses are added, the total production cost for the CDMA iPhone 4 amounts to $178.45.

While some of the difference appears to simply be due to reductions in the cost of components over time and would similarly affect the GSM iPhone 4 if it were evaluated today, Apple has made a few design changes that may have reduced costs for the company.

Most notably, with Apple's adoption of the MDM6600 "world-mode" baseband chip from Qualcomm offering integrated GPS circuitry, the company has been able to eliminate a Broadcom GPS chip that is present in the GSM version of the iPhone 4. The report also points to a revised version of the Wi-Fi combo chip module from Murata as an example of a design change adopted by Apple for the new device. The new module is smaller than the one used in the original iPhone 4 and represents further optimization by the component supplier.

Presumably unrelated to cost structures, the report also discusses Apple's modifications to the antenna design, which utilizes a separate Bluetooth/WLAN antenna isolated from the enclosure and allows the company to dedicate a portion of the frame as a diversity antenna to improve reception.

iSuppli's bill of materials cost estimates account only for the cost of the individual hardware components used in the device, with an additional amount added on to reflect manufacturing costs. The estimates do not include other costs involved in product development, manufacturing, and sales, such as research and development, software, patent licenses, marketing, and distribution expenditures.

Related Forum: iPhone

Popular Stories

Apple Glass

Apple Smart Glasses: Everything We Know So Far

Wednesday May 21, 2025 8:21 am PDT by
Google recently made waves by showcasing a set of lightweight smart glasses featuring deep Gemini integration and an optional in-lens display. The demo has reignited interest in Apple's own smart glasses project, which has been the subject of rumors for nearly a decade. Here's a recap of where things stand. Current Development Status Apple is actively working on new chips specifically...
Apple Glasses Purple Feature

Apple Smart Glasses Launching in 2026

Thursday May 22, 2025 12:22 pm PDT by
Apple is planning to launch a set of smart glasses by the end of 2026, reports Bloomberg. The glasses will be comparable to the Meta Ray-Bans and the Android XR glasses that Google showed off earlier this week. Apple's smart glasses are expected to include cameras, microphones, and AI capabilities, much like the Meta Ray-Bans. The glasses will be able to take photos, record video, provide...
Apple CarPlay Ultra instrument cluster themes 01

Apple's CarPlay Ultra Is Here – Does Your iPhone Support It?

Thursday May 15, 2025 5:17 am PDT by
Apple's recently announced CarPlay Ultra promises a deeply integrated in-car experience, but not all iPhone users will be able to take advantage of the new feature. According to Apple's press release, CarPlay Ultra requires an iPhone 12 or later running iOS 18.5 or later. This means if you're using an iPhone 11, iPhone XR, or any older model, you'll need to upgrade your device to access...
iPhone 17 Air Pastel Feature

iPhone 17 Air Battery Capacity and Weight Allegedly Revealed

Monday May 19, 2025 2:22 am PDT by
Apple is expected to launch an all-new ultra-thin iPhone 17 Air later this year, and while there have been plenty of rumors about the camera's overall design and thinness, we haven't heard any details about the device's weight and battery capacity until now. According to the leaker going by the account name "yeux1122" on the Korean-langauge Naver blog, the 6.6-inch iPhone 17 Air has a weight ...
WWDC 2025 Banner

Apple Announces WWDC 2025 Schedule, Including Keynote Time

Tuesday May 20, 2025 8:13 am PDT by
Apple today announced a more detailed schedule for its annual developers conference WWDC, which runs from June 9 through June 13. The schedule confirms that Apple's keynote will begin on Monday, June 9 at 10 a.m. Pacific Time, with a live stream to be available on Apple.com, in the Apple TV app, and on YouTube. During the keynote, Apple is expected to announce iOS 19, iPadOS 19, macOS 16,...
macOS 16 visionOS Inspired Feature 1

macOS 16: Everything We Know So Far

Tuesday May 20, 2025 7:31 am PDT by
The Worldwide Developers Conference (WWDC), Apple's annual developer and software-oriented event, is less than three weeks away. We haven't heard a great deal about macOS 16 ahead of its announcement this year, so we could be in for some major surprises when June 9 rolls around. Here's what we know so far about the next major update to Apple's Mac operating system. macOS 16 Name? Every year ...
maxresdefault

OpenAI Buys Jony Ive's AI Startup to 'Completely Reimagine What It Means to Use a Computer'

Wednesday May 21, 2025 10:27 am PDT by
OpenAI is acquiring io, the hardware-based AI startup co-created by Jony Ive, OpenAI announced today. Ive has been working with OpenAI CEO Sam Altman on io for two years, and the duo expects to develop a family of AI devices. In a video shared by OpenAI, Altman and Ive outlined their partnership and what they expect to create as a result of the merger. "I have a growing sense that everything ...