16GB iPhone 5 costs Apple $207 to build - iTechWit
Tomorrow 21 September was scheduled by Apple for iPhone 5 to start shipping within US and Europe, Apple made three versions of the iPhone 5, i.e., the 16 GB, 32 GB and 64 GB iPhone 5. The unlocked version of the iPhone begins from $649, and according to the figures released by IHS iSuppli, Apple is making a whooping that surpasses $400 on each iPhone it sells.
As given the report, a 16GB iPhone 5 cost Apple $207 and Apple is offering it at the rate of $649, amounting to a profit of $442 on each 16 GB version sold.
“With the base model carrying a $199.00 BOM, the iPhone 5’s components are expected to be slightly more expensive compared to the iPhone 4S model,” said Andrew Rassweiler, senior principal analyst, teardown services, for IHS. “The low-end iPhone 4S with the same memory density as the base-model iPhone 5 carried a BOM of $188.00, 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.”
Apple spent about $217 to make the 32GB iPhone 5 while it sold it for $749, pocketing a profit of $532 on each 32 GB iPhone 5 sold.
Now, the 64 GB version is the biggest, it cost Apple about $238 making it, and Apple retails it for $849, making about $611 for each 64GB iPhone 5 sold according to the report from IHS iSuppli.
Note that these prices does not includes other expenses like licensing, royalties, software and other expenditure, it only includes, cost on hardware, assembling and manufacturing.