You are using an outdated browser. Please upgrade your browser to improve your experience.
Apple Will Make A Boatload Of Cash On Each iPhone 5 Sold

Apple Will Make A Boatload Of Cash On Each iPhone 5 Sold

September 19, 2012
IHS iSuppli is out with their virtual teardown of the iPhone 5. What they found is that Apple’s latest handset costs slightly more to produce than the iPhone 4S. But don't cry too much for Apple, because they'll still make a ton on their latest iPhone model. According to the survey, Apple will spend $207 for each 16GB iPhone 5 that is produced. This includes the bill of materials (BOM) and manufacturing costs. The 32GB iPhone 5 costs Apple $217, while the 64GB iPhone 5 costs $238. The most expensive part on the new iPhone is its display, which includes integrated, in-cell touch sensing. The cost: $44 per device vs. $37 on the iPhone 4S. Other findings include:
  • LTE/4G technology has added $10 to the cost of the iPhone, or $34 per device. This compared to about $24 for the iPhone 4S.
  • The new A6 processor is slightly more expensive, at $17.50, compared to $15 for the A5.
According to Andrew Rassweiler, senior principal analyst, teardown services, for IHS:
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.
Here is the full breakdown of the hardware costs associated with the new iPhone: Before marketing and other costs, this means that Apple could make as much as $442 on each 16GB iPhone 5, $532 on the 32GB iPhone 5, and $611 on the 64GB iPhone 5. Not bad for a little company from Cupertino, Calif., huh? For more information on the iPhone 5, see The iPhone 5 Is Faster Than Predecessor, Android Devices and The iPhone 5 Event Video Recap - Everything You Need To Know. Source: IHS iSuppli

Related articles