IHS iSuppli has released its estimate of the component costs involved in building the iPhone 5, performing a virtual teardown based on information revealed by Apple and industry knowledge. The estimate, which does not include numerous other costs involved in product development, manufacturing, and sales, such as research and development, software, patent licenses, marketing, and distribution expenditures, pegs the component cost of the entry-level 16 GB iPhone 5 at $199.
The new iPhone 5 carries a bill of materials (BOM) of $199.00 for the low-end model with 16Gbytes of NAND flash memory, according to a preliminary virtual teardown conducted by the IHS iSuppli Teardown Analysis Service. When the $8.00 manufacturing cost is added in, the cost to produce the iPhone 5 rises to $207.00. For the 32Gbyte version of the iPhone 5, the BOM cost increases to $209.00, while 64Gbyte version is estimated at $230.00, as presented in the table below.
The estimated $199 bill of materials (BOM) for the 16 GB model is slightly higher than the firm's $188 estimate for the iPhone 4S at that device's launch last year, but a halving of flash storage prices over the past year means that Apple's margins improve as capacity increases. While the 32 GB and 64 GB models of the iPhone 4S carried BOMs of $207 and $245 respectively, those estimates move to $209 and $230 for the iPhone 5.
While the price of some components, such as NAND flash, has fallen during the past year, the iPhone 5’s overall BOM has increased mainly because its display and wireless subsystems are more expensive compared to the iPhone 4S.”
Compared to the iPhone 4S, flash storage pricing declined by roughly $10 on the entry-level iPhone 5, but that decrease was more than offset by a $7 increase in display costs to $44 due to the adoption of in-cell touch sensors and a $10 increase in wireless costs with the move to Qualcomm's latest LTE-compatible chips. At the 64 GB level, a $37 decrease in flash memory compared to the iPhone 4S is able to overcome the other increases to lower Apple's overall estimated costs for the device.
I know it's been said a million times already (but I'll say it again) but man, it really bites that Apple charges an extra 200 bucks for additional memory that costs them 30 bucks.
If you're hiring someone to build and install a fence on your property, and they quote you 5 days time at $3,000.... then you point out that the wood and nails only cost $400, are they ripping you off?
Cost of materials is not the complete cost of anything. Maybe Apple should sell a do-it-yourself iPhone kit for $200, and see if any of you can put it together?
As a shareholder pricing means great profit and great return on my investment.
As a customer for only $10 difference between 16gb and 32gb, Apple should have just made the 32gb iPhone the entry $199 price and discontinue the 16gb phone. And make 64gb $299.
Thursday December 8, 2022 2:45 am PST by Sami Fathi
Apple yesterday announced that end-to-end encryption is coming to even more sensitive types of iCloud data, including device backups, messages, photos, and more, meeting the longstanding demand of both users and privacy groups who have rallied for the company to take the significant step forward in user privacy.
iCloud end-to-end encryption, or what Apple calls "Advanced Data Protection,"...
Thursday December 8, 2022 7:05 am PST by Joe Rossignol
iOS 16.2 is expected to be released next week following nearly two months of beta testing. With last-minute additions like Apple Music Sing and Advanced Data Protection, the software update now has over a dozen new features for the iPhone.
Below, we've recapped many of the new features coming with iOS 16.2, including Apple's new whiteboard app Freeform, two new Lock Screen widgets, the...
Monday December 5, 2022 11:44 am PST by Juli Clover
Due to production issues at Apple supplier factories in China, the iPhone 14 Pro and iPhone 14 Pro Max are backordered and basically out of stock at every store. If you were planning to gift or receive an iPhone 14 Pro model for the holidays and didn't already get one, you're basically out of luck because they're gone until late December.
Subscribe to the MacRumors YouTube channel for more ...
Wednesday December 7, 2022 12:24 pm PST by Juli Clover
With the iOS 16.2 release candidate that came out today, Apple added the new Apple Music Sing feature that was announced earlier this week. We thought we'd check out the new karaoke feature to see how it works.
Subscribe to the MacRumors YouTube channel for more videos. Apple Music Sing is available on modern iPhones and iPads, as well as the newest Apple TV 4K. It's built in to the Apple...
Thursday December 1, 2022 8:44 am PST by Joe Rossignol
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far.
iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
Anker this week has introduced a new sale across its most popular accessories on Amazon, including savings on USB-C cables, wall chargers, portable batteries, wireless chargers, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running.
Many of these sales...
Wednesday December 7, 2022 10:00 am PST by Joe Rossignol
Apple today announced it is expanding end-to-end encryption to many additional iCloud data categories on an opt-in basis for enhanced security.
iCloud already protects 14 data categories using end-to-end encryption by default, including the Messages app when backups are disabled, passwords stored in iCloud Keychain, Health data, Apple Maps search history, Apple Card transactions, and more,...
Wednesday December 7, 2022 6:47 pm PST by Juli Clover
Twitter plans to charge $11 per month for a Twitter Blue subscription on the iPhone in order to account for the 30 percent cut that Apple takes from in-app purchases, reports The Information. On the web, Twitter Blue will be priced at $7 per month.
Prior to when Twitter Blue was paused, Twitter was charging $7.99 for a subscription, but the pricing will change before it relaunches. According ...
Tuesday December 6, 2022 2:31 pm PST by Juli Clover
Apple is aiming to launch an Apple-branded consumer-oriented vehicle by 2026, and its goal is to hit a price point under $100,000 to make the car appeal to a wider range of customers, reports Bloomberg.
Apple initially planned to design a car that might look similar to Canoo's Lifestyle Vehicle, where passengers could face one another in a limousine-style car with no steering wheel or...
Top Rated Comments
How much do you think R&D, manufacturing, assembly, import taxes for respective countries etc etc etc yada yada cost?
Cost of materials is not the complete cost of anything. Maybe Apple should sell a do-it-yourself iPhone kit for $200, and see if any of you can put it together?
As a customer for only $10 difference between 16gb and 32gb, Apple should have just made the 32gb iPhone the entry $199 price and discontinue the 16gb phone. And make 64gb $299.
What planet do you come from?