iPhone 5 Costs Apple $207 to Build: IHS
An IHS report estimates Apple's iPhone 5 costs the company $199 to $230 to build, depending on the model.Apple's iPhone 5 packs some of the latest features, high quality materials and advanced components in the smartphone market into its slim frame, bringing the bill of materials (BOM) for the low-end version, the 16GB model, to $199, according to a virtual teardown of the handset by the IHS iSuppli Teardown Analysis Service. The addition of 4G Long-Term Evolution (LTE) capability, a new processor and a larger screen contributed to the higher production cost, the report concluded. An $8 manufacturing cost pushes the total price to $207, while the BOM for the 32GB version is $209 and for the 64GB version is $230, according to the report, which is based on an analysis of the specifications announced by Apple, combined with information regarding known components and suppliers. Apple's touch-sensitive display is the costliest component of the handset, costing Apple $44, a bump up from the $37 cost for the iPhone 4S. The report said the added cost was due to the larger 4-inch screen on the iPhone 5, as well as the inclusion of the new in-cell touch-screen technology.
"The iPhone 5's components are expected to be slightly more expensive compared to the iPhone 4S model," Andrew Rassweiler, senior principal analyst of teardown services for IHS said in a prepared statement. "The low-end iPhone 4S with the same memory density as the base-model iPhone 5 carried a BOM of $188, according to a preliminary estimate issued by IHS in October 2011. 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."