x PhoneArena is looking for new authors! To view all available positions, click here.
  • Home
  • News
  • Each iPhone 5 would cost about $270.10 to produce, according to estimates

Each iPhone 5 would cost about $270.10 to produce, according to estimates

Posted: , by Nick T.

Tags:

Each iPhone 5 would cost about $270.10 to produce, according to estimates
We are pretty sure that a great deal of our readers will go out and grab an iPhone 5 not long after it hits the shelves this fall. They would also drop a significant amount of cash on the shiny new smartphone and will most likely commit to a 2-year agreement with their carrier of choice. But how many of them would ask themselves how much money has Apple actually put into the device?

Well, according to the team of industry analysts at Bloomberg, each 16-gig iPhone 5 would hypothetically cost Apple around $270.10 to produce with software, research and shipping costs included in the estimate. Sure, the real figure might be completely different as the next-gen iPhone has yet to be released and torn apart, but it is not impossible for Bloomberg to be using insider information in its analysis.

If the estimate turns out to be correct, however, every iPhone 5 that gets shipped to a US carrier would yield about $350 in profit going straight to Apple's already fat wallet. In comparison, the iPhone 4 was said to be built using only $187.51 worth of components, yet this estimate does not take into account anything beyond the pure cost of its hardware.

We have to clarify that the graphic presented here has been found on Bloomberg's servers, but a complete written article on the topic has yet to be published by the media. However, we will be keeping an eye on it and will update you should any other interesting information gets unveiled.

source: Bloomberg via SlashGear

Bloomberg's hypothetical cost breakdown of the iPhone 5

Bloomberg's hypothetical cost breakdown of the iPhone 5


33 Comments
  • Options
    Close




posted on 09 Aug 2011, 06:06 10

1. robertwwo (unregistered)


270,1 $ + 270,1 $ for name Apple iPhone 5 + 100 $ for ultra trendy accesories = 640,2$ price, ....and no brain users buy it and stand and wait near shoop for it 72h :-//! lol

posted on 09 Aug 2011, 11:22 2

16. stealthd (Posts: 975; Member since: 12 Jun 2011)


Making up bs numbers: priceless. For everything else, there are trolls.

posted on 09 Aug 2011, 06:09 6

2. xenover (Posts: 174; Member since: 27 May 2011)


Oh don't worry, they will only TRIPLE the retail price for unlocked devices.

posted on 09 Aug 2011, 06:49 6

3. andro (unregistered)


The good news of this for islaves is that they will not have the privilege of paying even more money for the 'new' iphone to their apples gods. This changes everything again again and maybe again

posted on 09 Aug 2011, 06:50 2

4. andro (unregistered)


i meant they will NOW have the privilege in above comment lol

posted on 09 Aug 2011, 07:09 4

5. PhoneArenaUser (Posts: 5497; Member since: 05 Aug 2011)


It is ain't news or secret that iPhone is highly overpriced.

posted on 09 Aug 2011, 08:09 7

6. davecann2 (Posts: 460; Member since: 15 Mar 2011)


I'll take two!

Without these iphone/ipad articals you trolls would have no where to post your bias and factless comments.

Its a fact the Apple uses all top quality hardware in their products. I think thats the real reason for the high price. i cant say the same for my plastic Andriod phone that actually cost the same as a new iphone on contract.

posted on 09 Aug 2011, 08:23 1

7. PhoneArenaUser (Posts: 5497; Member since: 05 Aug 2011)


@davecann2

"Its a fact the Apple uses all top quality hardware in their products."

Could you please more widely explain this your statement?

posted on 09 Aug 2011, 09:07 7

8. HTCiscool (Posts: 449; Member since: 16 Jul 2011)


He means that they are all crafted from Aluminium and premium materials. They also incorperate all the latest Chipsets and features that are available at the time. Name me ONE edition of the iPhone/iPad that didn't have the most cutting edge hardware available for that time. same with Macs they are by far the best computers and although they are pricey, they are all made from Aluminium, look beautiful and feature the best hardware available as well as the most thought-out and best software. Although the iPhone may not be the BEST phone available now, Macs are by far the best computer offerings on the market.

You cannot argue that Apple knows how to play its cards right and satisfy customers

posted on 09 Aug 2011, 09:56 1

9. PhoneArenaUser (Posts: 5497; Member since: 05 Aug 2011)


@HTCiscool

"He means that they are all crafted from Aluminium and premium materials."

He was talking about "top quality hardware" not about the casing.

"They also incorperate all the latest Chipsets and features that are available at the time."

Again, he was talking not about how new or old it is, he was talking about the "top quality hardware".

posted on 09 Aug 2011, 09:56 4

10. dandirk (Posts: 187; Member since: 04 Aug 2011)


You mean the iphone 5 will have the latest LTE chipset?

Actually Apple releases hardware with older chipsets, the reasoning is that these are tested and verified and stable.

They have always been that way, and though a detraction for "enthusiasts"... for normal people this is a good thing, using tried and true hardware.

posted on 09 Aug 2011, 11:41

17. ngo2dd (Posts: 791; Member since: 08 Jul 2011)


The iphone 4 was using current generation of Hummingbird that was out for the SGS phone.

posted on 09 Aug 2011, 17:03 1

26. taz89 (Posts: 2014; Member since: 03 May 2011)


as i recall the 3g and 3gs was plastic and no one complained then...i bet if the ip5 was plastic i know it wont be but all apple fanboys will say plastic is better, glass breaks lol

posted on 09 Aug 2011, 12:05 3

19. davecann2 (Posts: 460; Member since: 15 Mar 2011)


@PhoneArenaUser,
My mistake, I should have been a little clearer.....

Remember the the iphone 4 is a 2 year onld product...
2yrs ago it had top quality hardware and construction materials.

Also, keep in mind,hardware specs are different from hardware quality. The specs may be currently dated but the quality of its materials are high.

posted on 09 Aug 2011, 10:04 3

11. android_sucks (Posts: 111; Member since: 28 Jul 2011)


Awesome!!! So True!!!!

posted on 11 Aug 2011, 21:14

33. jcoberg10 (Posts: 110; Member since: 30 Oct 2009)


apples profits come out of the Carriers profits, which come out of the employees, and sales peoples pay checks, not the customer.

posted on 09 Aug 2011, 10:13 5

12. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


I bet crapdroids cost less than $100 to make and no money goes into development since they just copy and paste other companies programming code

posted on 09 Aug 2011, 10:37 3

13. zuno gyakusatsu (Posts: 257; Member since: 16 Mar 2010)


hahahahahaha

posted on 09 Aug 2011, 10:46 2

15. HTCiscool (Posts: 449; Member since: 16 Jul 2011)


OK now You're the one who's trolling.

posted on 09 Aug 2011, 11:42

18. ngo2dd (Posts: 791; Member since: 08 Jul 2011)


The thunderbolt case more then the iphone 4 because of the LTE chip set which is cutting edge.

posted on 09 Aug 2011, 12:42

21. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


lmao!!!!

posted on 09 Aug 2011, 13:11

23. rican (Posts: 132; Member since: 02 Jul 2011)


lol ive noticed something from your comments, you always change what you say when you get proven wrong, theres always something new with you, everytime phonearena post a bad article about android you go with that, then sniggly evo or whatevman kill you with facts and truth then you go away, once phonearena comes out with another article about android you repeat the process. f**king tool

posted on 09 Aug 2011, 22:54

30. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)


I'm the one posting facts and they can't handle it. Fandroids hate facts because Apple is always doing fantastic from an objective and factual standpoint.

posted on 10 Aug 2011, 08:08

32. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


Apple only makes money bacause of iSheep like you an Miz.

posted on 09 Aug 2011, 13:52

24. darth8ball (Posts: 519; Member since: 02 Aug 2011)


TROLL, TROLL, TROLL.

posted on 09 Aug 2011, 17:04

27. taz89 (Posts: 2014; Member since: 03 May 2011)


you cant have an article without taco bad mouthing android

posted on 09 Aug 2011, 10:45 3

14. HTCiscool (Posts: 449; Member since: 16 Jul 2011)


I'd rather have the iPhone 5 over the Samsung Galaxy S ll on the condition that it has LTE. The new iPhone will have higher res, better quality screen and it will be THINNER!

posted on 09 Aug 2011, 12:43 1

22. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


I think the gs2 is the 2nd best phone behind the iphone....

posted on 09 Aug 2011, 17:10

28. taz89 (Posts: 2014; Member since: 03 May 2011)


im sorry but the iphone 4 is not better than the galaxy s2, apart from the higher dpi it has nothing on the s2...if you ment ip5 well thats not even out and the most it will do is match the s2 specs..i have both phones and as much as love the design of the iphone 4 bar the ''antennagate'' the s2 is clearly superior in all aspects apart from the choice games available although that is not the s2 fault but of android itself.

posted on 09 Aug 2011, 13:56

25. darth8ball (Posts: 519; Member since: 02 Aug 2011)


I read that the reason Apple flipped out and sued Samsung was they wanted the screen that Sammy was putting in the GS2 for the idiotPhone5 and Sammy said no thank you we will keep this one for ourselves (Samsung produces the idiotPhone displays). So better display on the i5 me no think so.

posted on 09 Aug 2011, 12:39

20. gallitoking (Posts: 4690; Member since: 17 May 2011)


this is not news.. we get screwed over many everyday items..except my Jordans VI made by mr. jordan himself...

posted on 09 Aug 2011, 18:06

29. Lwazi_N (Posts: 205; Member since: 23 Jun 2011)


Cheap chinese labor. Cheap chinese parts. Inflated prices.

posted on 10 Aug 2011, 02:20

31. AngusNG12345 (Posts: 37; Member since: 19 Jul 2011)


I see many people say that Apple products are overpriced and stuff. But yet so many people buy them. Then androiders start calling them stupid and isheep and stuff. True, many of them might not be too knowledgeable in terms of tech, but you can't bash Apple. They are being very smart, their marketing has been very well done. Macs and iphones have good build quality, and you have to say a macbook air looks way better next to other plasticky notebooks. But then thats what attract customers...

and plus I am not an apple fanboy. i like android too and im thinking of getting one soon.

Want to comment? Please login or register.

Latest stories