Break-up value of the Apple iPhone 4S estimated at $203
Making the new iteration of the iPhone a World Phone added only $6 to the cost of a GSM-only unit, and updating the camera to an 8MP shooter tacked on $3 to the price of the components. While these are preliminary figures, they tend to back up Apple's decision to bypass LTE or WiMax connectivity, possibly done for financial reasons. After all, with the same amount of space, the HTC ThunderBolt has components valued at $262 according to TechInsights. That includes a LTE chipset, bigger battery and slightly slower processor than what is in the Apple iPhone 4S, no dual-mode support and a lower resolution screen.
A breakdown of the 8GB Apple iPhone 4 shows that Apple is offering the phone with smaller margins. The breakdown of this model comes out to $156 in component cost, but Apple is willing to pass up on some of its profit in order to price the phone at $99 with a signed 2-year contract.
source: UBMTechInsights via electronista
1. belovedson (Posts: 832; Member since: 30 Nov 2010)
does UBM consider the prices paid in bulk?
3. saiki4116 (Posts: 356; Member since: 31 Mar 2011)
yup otherwise u would not got those cheaply
4. oddmanout (Posts: 435; Member since: 22 May 2009)
The rumors did mention a "cheaper" iphone 4... They sure delivered that.
5. Jeroen (unregistered)
This is ridiculous 200 bucks on contract !? People who will buy this phone are delusional. This phone is not worth that amount of money, of course you can't argue with isheep.
6. remixfa (Posts: 13930; Member since: 19 Dec 2008)
almost 700 off contract.
well, to bring it back around to Michael's article.. apple sure doesnt care about market share.. thats obvious.. and with prices like these, we can see the only thing they care about is gouging the customers... eerr astronomical profit margins. Their marketshare will continue to shrink yet they will still swim in money.. lol