The Apple iPhone 5 launched today in the UK and new information reported by iHS iSuppli suggests that the 16GB iPhone 5 costs Apple just $207 to manufacture.
iHS iSuppli have conducted a preliminary virtual tear-down of the iPhone 5's bill of materials, which adds up the cost of all the hardware present in the smartphone. This figure is both preliminary and virtual , but it does give as an idea of what sort of costs Apple incur when producing the new iPhone.
The cost to Apple for the hardware in the device amounts to $199, while the manufacturing cost comes in at $7 taking us to the total figure of $207. The cost rises to $217 for the 32GB iPhone 5, while the flagship 64GB model costs Apple $238 to produce.
As you'd expect the biggest single outlet when manufacturing the iPhone 5 is the 4 inch Retina display which costs Apple $44 to produce. Other significant costs including the wireless chip ($34), Camera ($18) and the A6 processor ($17.50).
The net result is that the iPhone 5 is costing Apple around $20 more than the iPhone 4S to manufacturer because of the new 4G LTE chip, the larger touch-screen and faster processor. However, when you consider Apple ships the 16GB model for $650 we expect they still have some profit to play with.
3G will bring you all information about the iPhone 5 as soon as its posted.
By Simon Thomas on 21st September, 2012