[quote]A physical teardown of the iPhone 5 confirms the bill of materials (BOM) and manufacturing cost reported last week in an IHS iSuppli virtual teardown. [b]The low-end model with 16GBytes of NAND flash memory carries a BOM of $199.00, with the cost rising to $207.00, when manufacturing expenses are added in. For the 32Gbyte version of the iPhone 5, the BOM cost increases to $209.00, while the 64Gbyte version is estimated at $230.00.[/b]
[t]http://www.isuppli.com/PublishingImages/Press%20Releases/2012-09-25_iPhone5.jpg[/t]
Please note that these teardown assessments are preliminary in nature, account only for hardware and manufacturing costs and do not include other expenses such as software, licensing, royalties or other expenditures.
“[b]The iPhone 5 exhibits a great deal of similarity to the iPhone 4S in terms of component suppliers,” said Andrew Rassweiler, senior principal analyst, teardown services, for IHS. “But beyond this superficial resemblance, there are some critical changes to product design and parts that enable major upgrades that improve user experience.[/b] These range from the faster applications processor, to the larger display, to the high-speed 4G LTE air interface. And beyond some of the high-profile changes that bring obvious benefits in performance and features, there are myriad upgrades and enhancements to virtually every component and subsystem in the iPhone 5.”
[b]iPhone 4S suppliers making a return engagement with the iPhone 5 include Samsung, Qualcomm, Murata, Dialog, Texas Instruments, STMicroelectronics, Cirrus Logic, Avago, Skyworks, NXP and AKM. Nevertheless—from the advanced, $17.50 A6 processor manufactured by Samsung, down to the relatively simple $0.62 electronic compass from AKM Semiconductor—almost every part has been updated.[/b]
[t]http://www.isuppli.com/PublishingImages/Press%20Releases/2012-09-25_iPhone5_parts.jpg[/t]
[b]New suppliers include SanDisk Corp., which contributed the NAND flash memory in the specific iPhone 5 dissected by the IHS iSuppli Teardown Analysis Service. This is first time that SanDisk NAND has been found in an iPhone examined by the IHS iSuppli Teardown Analysis Service.[/b] In the iPhone 4S teardown, the NAND supplier was Samsung. However, with the NAND component being a commodity part available from multiple suppliers, Samsung, Hynix and Toshiba also could serve as Apple’s sources for this memory.
[b]Elpida likewise has replaced Samsung as the supplier of the SDRAM in the individual iPhone 5 analyzed by IHS.[/b] However, Samsung and Hynix could be supplying this widely available memory part. Compared to the iPhone 4S, the density of this part has been doubled to 1Gbyte, up from 512Mbytes, giving it a total cost of $10.45.
The battery in the iPhone 5 is supplied by Sony Corp.—a role taken by Amperex Technology in the iPhone 4S. The cost of the battery in the iPhone 4S is estimated at $4.99.
[b]One major change to the iPhone 5 is in its baseband processor. While Qualcomm remains the supplier of this critical component, the iPhone 5 integrates the company’s MDM9615M and RTR8600 parts; the 4S, in comparison, employed the Qualcomm MDM6610 and RTR8605 devices.[/b] The new Qualcomm parts were utilized to allow support for the LTE air standard.
The addition of LTE also had other implications for the iPhone 5 design.
“The support for 4G LTE in the iPhone 5 added a new level of complexity to the radio frequency (RF) front end, so much so that Apple had to create two different models of the iPhone to accommodate their wireless carrier partners,” said Wayne Lam, senior analyst for wireless communications at IHS. “This represents a departure from Apple’s approach of offering only a single model for the iPhone 4S.”
“While most manufacturers make great effort to simplify designs by minimizing the total number of mechanical parts and fasteners in their products, Apple appears to be going in the other direction with the iPhone 5,” said Kevin Keller, senior principal analyst, teardown analysis, for IHS. “The iPhone 5 incorporates even more mechanical parts than previous iPhone designs, resulting in a very complex assembly. But Apple can do this and still produce the iPhone 5 at such low costs due to its capability to leverage its vast army of low-cost labor.”[/quote]
[url]http://www.isuppli.com/Teardowns/News/Pages/Many-iPhone-5-Components-Change-But-Most-Suppliers-Remain-the-Same-Teardown-Reveals.aspx[/url]
And how much does a unlocked iPhone 5 cost with no [I]"strings attached"[/I] services from a store that a mere mortal like you and me can go-to?
Talking about all 3 models.
The other $400 is needed for suing other companies
this is why i feel like there should be a maximum markup for products
[QUOTE=DOG-GY;37800460]this is why i feel like there should be a maximum markup for products[/QUOTE]
Poor luxury product companies.
[SUP][SUP]Kidding[/SUP][/SUP]
I wish there was a way to buy the parts directly from the manufactors and build it together myself.
all (similarly specced) phones are about the same BOM price, give or take a dozen singles or so...
that's actually a lot more expensive than i thought, i thought they could build them for like 10 bucks each
-snip- nevermind
[QUOTE=Van-man;37800456]And how much does a unlocked iPhone 5 cost with no [I]"strings attached"[/I] services from a store that a mere mortal like you and me can go-to?
Talking about all 3 models.[/QUOTE]
I've seen some models go up to $1000 on craigslist in the very first few days of release.
You need to take into account the cost of research and development. This is not news.
[QUOTE=Cheese?;37800545]You need to take into account the cost of research and development. This is not news.[/QUOTE]
no you don't. that's not a production cost, that's a general cost to the company. this is news, how could you think otherwise?
[QUOTE=Cheese?;37800545]You need to take into account the cost of research and development. This is not news.[/QUOTE]
it has already been researched and developed
that's why it's at production stage
the BOM cost is the cost for all the materials, which, y'know, is factored into production
[QUOTE=Cheese?;37800545]You need to take into account the cost of research and development. This is not news.[/QUOTE]
Still, Apple made $13B and sold 37 million Iphones in the first quarter of 2012, you think they could reduce the price a little or at least give some money to charity.
[QUOTE=Cheese?;37800545]You need to take into account the cost of research and development. This is not news.[/QUOTE]
R&D? I don't want to hop onto the bandwagon but there wasn't much innovation in this phone... Most of the changes were software side with iOS6.
[QUOTE=Cheese?;37800545]You need to take into account the cost of research and development. This is not news.[/QUOTE]
Apple could still easily afford to be a loss leader with how much they make in the app store.
"loss leader" meaning selling the product below cost. Like game consoles, the Kindle, and the Nexus.
And people are willing to pay for it. It's all part of their marketing anyways. Make something expensive and people will perceive it as being a better product, even if it's not.
Wonder how many more sales they'd make if they dropped it down to $400
Apple are buttfucking their customers, this isn't a new concept
All companies charge more than the production cost, it's how business works, it just happens Apple want a lot more for their products
[QUOTE=Bredirish123;37800592]R&D? I don't want to hop onto the bandwagon but there wasn't much innovation in this phone... Most of the changes were software side with iOS6.[/QUOTE]
Except you know, the processor that was developed in-house.
Besides, iPhones are priced the same as every other phone. On contract they go for the same price as all the other flagship phones, and off contract they are expensive as balls just like every other phone.
The same can't be said for every other product they make though.
the only difference for pricing is that the extra GB models of the iPhone are in $100 increments, which is probably the biggest advantage phones like the GSIII have
but base price and BOM price are the mostly the same
[QUOTE=Dantai;37800659]Wonder how many more sales they'd make if they dropped it down to $400[/QUOTE]
Not enough to make up for the difference
Nearly everything has tiny manufacturing costs compared to retail price.
That expensive gaming rig you're sat infront of? It was thrown together in some Asian factory for a fraction of the price you paid.
[QUOTE=NoDachi;37800710]Nearly everything has tiny manufacturing costs compared to retail price.
That expensive gaming rig you're sat infront of? It was thrown together in some Asian factory for a fraction of the price you paid.[/QUOTE]
really?
so they took it apart before shipping the parts seperately?
those clever bastards!
[QUOTE=NoDachi;37800710]
That expensive gaming rig you're sat infront of? It was thrown together in some Asian factory for a fraction of the price you paid.[/QUOTE]
I didn't know my bedroom was an asian sweatshop.
[QUOTE=Desuh;37800474]I wish there was a way to buy the parts directly from the manufactors and build it together myself.[/QUOTE]
Wasn't there a guy when the white iPhone wasn't available who bought the case pieces directly from the manufactured them and painted them white
makes ya wonder how much the nano and touch cost to make since they're fairly cheap in comparison to the iphone
[QUOTE=Protocol7;37800707]the only difference for pricing is that the extra GB models of the iPhone are in $100 increments, which is probably the biggest advantage phones like the GSIII have
but base price and BOM price are the mostly the same[/QUOTE]
That is true, higher capacity iPhones cost an ass load of money. I think part of the reason is the availability of expandable storage on the competition. Why would anyone pay $100 for an extra 16gb when they can pay at most $30 for a microSD card of the same capacity. Apple doesn't have to deal with that and charge a ridiculous fee for it.
[QUOTE=GameDev;37800774]Wasn't there a guy when the white iPhone wasn't available who bought the case pieces directly from the manufactured them and painted them white[/QUOTE]
there are also people like me who color convert iPhones for about $60 a job. I've done it 4 times now, and even my own iPhone 4 is green.
companies arent allowed to make profit these days huh
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