Components of 16GB iPhone 4 estimated to cost Apple $188
A breakdown of the components that make up Apple's iPhone 4 has found that the most expensive item in the device is its high-resolution Retina Display, with an estimated price of $28.50.
As first reported by Businessweek, iSuppli's teardown of the iPhone 4 found that the components inside cost an estimated $187.51. Apple's latest phone starts at $199 with 16GB of internal memory and a two-year service contract in the U.S. The cost breakdown applies to the 16GB iPhone 4.
The most expensive component is the highly touted Retina Display found on the iPhone 4. Supplied by LG Display, the component costs $28.50, iSuppli said. The custom-built A4 processor, assembled by Samsung, cost an estimated $10.75.
The newly added gyroscope in the iPhone 4 was said to cost another $2.60, in addition to the 65-cent accelerometer found in the current phone as well as previous models. The new gyroscope is made by STMicroelectronics of Geneva.
Other suppliers of the internal hardware include touch-sensitive panels from Wintek and TPK, and chips from Skyworks Solutions and TriQuint Semiconductor.
Neither Apple nor its carrier partners would comment on how much is paid by wireless providers for the unsubsidized handset. Historically, the average selling price of previous model iPhones has been around $600.
The total estimated cost is slightly higher than the iPhone 3GS, first released last year. The 2009 handset cost an estimate $179 in parts for Apple.
In fact, the price of Apple's phones has been steadily increasing over the years. In 2008, iSuppli found that the iPhone 3G carried a components cost of $174.33.
TechCrunch notes in its coverage of the report that "iSuppli is well-known for low-balling these numbers in an effort to convince manufacturers to contact them in order to connect with their preferred suppliers, so grains of salt must be taken."
As first reported by Businessweek, iSuppli's teardown of the iPhone 4 found that the components inside cost an estimated $187.51. Apple's latest phone starts at $199 with 16GB of internal memory and a two-year service contract in the U.S. The cost breakdown applies to the 16GB iPhone 4.
The most expensive component is the highly touted Retina Display found on the iPhone 4. Supplied by LG Display, the component costs $28.50, iSuppli said. The custom-built A4 processor, assembled by Samsung, cost an estimated $10.75.
The newly added gyroscope in the iPhone 4 was said to cost another $2.60, in addition to the 65-cent accelerometer found in the current phone as well as previous models. The new gyroscope is made by STMicroelectronics of Geneva.
Other suppliers of the internal hardware include touch-sensitive panels from Wintek and TPK, and chips from Skyworks Solutions and TriQuint Semiconductor.
Neither Apple nor its carrier partners would comment on how much is paid by wireless providers for the unsubsidized handset. Historically, the average selling price of previous model iPhones has been around $600.
The total estimated cost is slightly higher than the iPhone 3GS, first released last year. The 2009 handset cost an estimate $179 in parts for Apple.
In fact, the price of Apple's phones has been steadily increasing over the years. In 2008, iSuppli found that the iPhone 3G carried a components cost of $174.33.
TechCrunch notes in its coverage of the report that "iSuppli is well-known for low-balling these numbers in an effort to convince manufacturers to contact them in order to connect with their preferred suppliers, so grains of salt must be taken."
Comments
"$260" ? is that a typographical error?
"The newly added gyroscope in the iPhone 4 was said to cost another $260,"
"$260" ? is that a a typographical error?
You gotta figure they meant $2.60
The newly added gyroscope in the iPhone 4 was said to cost another $260, in addition to the 65-cent accelerometer found in the current phone as well as previous models. The new gyroscope is made by STMicroelectronics of Geneva.
Sorry, what?
~Callum
EDIT: Didn't read posts above, I lose
A breakdown of the components that make up Apple's iPhone 4 has found that the most expensive item in the device is its high-resolution Retina Display, with an estimated price of $28.50.
The newly added gyroscope in the iPhone 4 was said to cost another $260…
For those questioning the cost, did they or anybody else including the author, Katie Marshal who wrote this piece, bother to read or check the real article?
Does an ingenious OS and flawless industrial design account for anything, Mr. Bean?
Flawless = perfect, faultless, works with no issues.
So, does the iPhone 4 fall into this? Well, i'd say the whole 'dropped calls because you hold it in your left hand' thing would imply no.
'Oh, but you have to hold it in a certain way'. Yeah, right. Its a phone, I want to hold it in my hand anyway I choose to.
In some ways, i`d say the new iPhone was designed by Mr Bean!
Note just a $260 gyroscope. Check out the old component cost: $17.4.33. That's a good price on any planet.
They should only charge 43.114.$.621 for retail price, based upon component costs.
Flawless = perfect, faultless, works with no issues.
...
And the thinnest industrial design would not work without a thick skin!!
Does an ingenious OS and flawless industrial design account for anything, Mr. Bean?
As has been discussed ad nauseum every time this type of report comes out - the numbers provided are the individual component cost of the parts - not the total cost to Apple of production including R&D - Software - shipping - marketing etc.
Kinda of like looking up the cost of a set of brake pads on eBay for your BMW vs dropping your car off at the BMW dealer to have the brakes replaced. (or any dealer really). would you expect the car dealer to instal your brake pads as the same price for which you could buy the same set of pads yourself?
or an oil change anywhere - including the quickie places - would you expect to pay a service provider to change your oil exactly the same as the purchase price of the oil at Wal-mart?
Being Made in the USA is the best way to be certain that you're money isn't going to fund murderers.
Jobs, I hope you're listening. You're better than the rest and they will follow your lead. People will pay more to know their money is going towards a purpose.
They should only charge 43.114.$.621 for retail price, based upon component costs.
They can't. They have a margin of 042.$ they need to hit on every unit.
So, does the iPhone 4 fall into this? Well, i'd say the whole 'dropped calls because you hold it in your left hand' thing would imply no.
which doesn't happen to 100% of the people 100% of the time. In fact, it's probably only perhaps 1-2% of the units sold that it happens at all and perhaps 50% of those with any regularity.
And it's not an issue unique to the iphone 4. fair number of those reporting this 'design flaw' admit it happened with their previous iphones or non iphone units.
As for this price breakdown, as always it just looks at the physical parts and neglects licensing etc for the needed patents. Show me that before you talk about how much of that $599 retail is profit due to how 'cheap' the phone is to build
This is the ugliness part that no Apple fan wants to admit. They are making twice as much on iPhone sales because they are charging AT&T the unsubsidized price. This is routine for all hardware makers. I suggest that others read the NYT article about how the materials used for computers are being treated like blood diamonds. People are being slaughtered.
Being Made in the USA is the best way to be certain that you're money isn't going to fund murderers.
Jobs, I hope you're listening. You're better than the rest and they will follow your lead. People will pay more to know their money is going towards a purpose.
There's a huge difference between iPhones and diamonds...although both are shiny.
The best thing you can to in regards to iPhones (and other consumer devices) is to put pressure on the companies to make sure that they improve wages, work and living conditions; and to make sure they're sourcing material or contracting with manufacturers who are sourcing material in ways that aren't evil or feed into evilness.
Diamonds on the other hand are much different. They're much more like Ivory Tusks. Diamonds have very little real value other than there's a market of women who think they're shiny and don't care how many people were raped, tortured terrorized, and murdered so they can have the shiny rock on their hand. While there is an actual utility use for diamonds, that demand can be met cheaper from better quality fake diamonds...for that matter with current technology even the needs of egotistical women can be better met with modern fake diamond technology.
Since diamonds have little utility and they're mostly just price supported through Debeers and a handful of others that control the industry, the best thing you can do is simply not buy *any* diamond.
Fortunately with material sourcing, we're already starting to see huge global changes. However while "Made in the USA" may make a difference in terms of work conditions, living wage, etc...it won't make any difference in where materials are sourced from or the conditions by which they're sourced.
This is the ugliness part that no Apple fan wants to admit. They are making twice as much on iPhone sales because they are charging AT&T the unsubsidized price. This is routine for all hardware makers. I suggest that others read the NYT article about how the materials used for computers are being treated like blood diamonds. People are being slaughtered.
Being Made in the USA is the best way to be certain that you're money isn't going to fund murderers.
Jobs, I hope you're listening. You're better than the rest and they will follow your lead. People will pay more to know their money is going towards a purpose.
The safest thing for any Western consumer to do, then, is to buy nothing that is made outside of one's country, and even then, you had better research deeply into the practices of each company because sweatshops exist in Europe and North America too.