post #1 of 1
Thread Starter 
Once upon a time, a long, long, time ago there was a Mac and a PC

The Mac was a computer but more than that it was the SUPERLATIVE computer (not that it had any competition). A company called Apple manufactured everything for this computer by themselves so everything was tightly controled with standards and quality that were second to none . People were willing to pay highly for such an efficient superior machine knowing that its reliability alone would make the higher cost worthwile.

Unfortunately the Mac was not alone in the computer world - the PC was everything the Mac wasn't - cheap, unrealiable, poor quality + standards - CUTTING CORNERS was a term familiar to many PC buyers.

There's a saying that in the future the only thing you can be sure of is that things never stay the same...........

Apple stresses cost reduction for iPhone 3G

I THINK YOU ONLY GET TO SEE THIS PAGE ONCE per computer? (without signing up)

In Our Opinion

Apple stresses cost reduction for iPhone 3G
The iPhone 3G sports an evolutionary design that favours cost reduction instead of cutting-edge features, supporting Apple Incs goal of expanding its market share and achieving a worldwide presence for the product, according to a physical teardown analysis conducted this weekend by iSuppli Corp.

iSupplis Teardown Analysis Service obtained an iPhone 3G and commenced a dissection in order to identify component suppliers, as well as to determine preliminary part and system costs.

Per the teardown analysis and subsequent examinations by analysts, iSuppli has issued a preliminary estimate of $174.33 for initial production costs for the 8Gbyte iPhone 3G.

This figure consists only of the iPhone 3Gs combined Bill of Materials (BOM) and manufacturing expenses. The total doesn't include other costs, including software development, shipping and distribution, packaging and miscellaneous accessories included with each phone.

iSupplis cost estimate is nearly identical to the $173 BOM predicted in iSupplis virtual teardown issued to the public in late June.

At $174.33, the BOM and manufacturing cost of the new iPhone is markedly less than the $227 that iSuppli estimated for the first-generation, 8Gbyte 2G iPhone in June 2007. While using a new design, the iPhone 3G really represents a refinement of the original iPhone 2G, according to iSuppli.

The addition of 3G wireless capability represents an evolutionary design step for the iPhone, not a revolutionary one, said Andrew Rassweiler, teardown services manager and principal analyst at iSuppli. iSuppli believes Apple aimed for a more cost-effective design for the 3G iPhone compared to the 2G, in order to lower the retail pricewhich will allow the company to seed adoption and to capture maximum market share nowwhile the company still has buzz and a perceived differentiation relative to its competitors.

The iPhone 3Gs use of an Infineon Technologies AG baseband chip that supports the HSDPA, WCDMA and EDGE air standards, plus the integration of three separate TriQuint Semiconductor Inc. tri-band WCDMA Power Amplifier Modules (PAMs), reflects the fact that the iPhone 3G is suited for sale worldwide.

iSuppli has conducted a teardown analysis of only one 3G iPhone. While there are variations in the components and suppliers for individual products, iSuppli believes that the vendors and parts identified in its teardown likely are representative of all iPhone 3Gs now being shipped excluding certain memory devices and other commodity parts that are available from multiple sources.

After iSuppli has completed an analysis of a larger sample of iPhones, it will issue further information.

Infineon AG was the big winner in the key baseband section of the iPhone 3G torn down by iSuppli, contributing its HSDPA/WCDMA/EDGE chip that includes dual ARM926 and ARM7 microprocessor cores.

Solely-sourced items include Infineons baseband solution, RF transceiver and Global Positioning System (GPS) devices; Samsung Electronics Co Ltds applications processor integrated with Synchronous DRAM (SDRAM); Marvell Technology Group Ltd.s WLAN device and Cambridge Silicon Radios (CSRs) Bluetooth chip.

Multi-sourced items include Toshiba Corp.s 8Gbyte NAND flash memory chip. Apples other likely sources for this part include Samsung.

Other observations made by iSupplis analysis team include:

ยท* The redesigned internals of the iPhone 3G include only one large printed circuit board (PCB), instead of the two nested PCBs found in the 2G version. The iPhone 3G uses a 10-layer board, compared to the less-expensive six-layer PCBs commonly employed in mobile handsets.
* The battery is not soldered into the iPhone 3G as it is done in the 2G, making it more serviceable.
* Some chips have the Apple logo or are unmarked. Although iSuppli has been able to identify many of these parts and their true manufacturers by de-capping the chips and examining their dies, some devices remain unidentifiable at this time.

Beyond the $174.33 BOM and manufacturing cost of the iPhone 3G, Apple is spending an estimated $50 on IP royalties per unit shipped. With the 8Gbyte version retail-priced at $199, and the estimated $300 subsidy paid by AT&T to Apple for each unit, Apple is selling the product at a price of $499, and spending $224.33 to produce each one. This gives Apple a BOM, manufacturing and royalty margin of 55 percent for each 8Gbyte iPhone 3G unit sold.