Jun 29, 2010

16GB iPhone 4 Costs Apple $188 To Make

As new gadgets get released, we’ve seen folks tear down the device to take a closer look at the individual parts in an effort to determine the cost to build the product. Such is the case with the new iPhone 4 which iSuppli has torn apart.

According to their estimates a 16GB iPhone 4 costs Apple $187.51 for the hardware alone. A partial breakdown of this hardware cost includes the Retina Display at $28.50, the A4 processor chip at $10.75 and the gyroscope at $2.60. The numbers by themselves give as an insight as to what Apple pays for the product, but by no means does it give us a complete insight into Apple’s profit because it doesn’t include any of the intangibles like design costs, manufacturing costs and of course marketing. However, it’s pretty safe to say that Apple has made a bundle with their next generation iPhone, especially after announcing that 1.7 million units were sold in the first three days alone.

Update:  A 16GB example costs about $187.51 in raw parts; the bill is less than the $223 of the 2007 original but more than the $173 iPhone 3G and the $178.96 iPhone 3GS. Most of that cost increase is attributed to the LG Display-built 960×640 IPS screen, which is estimated to cost $28.50 all by itself.

[ Via Cultofmac ]
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