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Preliminary bill of materials for the iPhone 5 pegged at $168 before teardown

Posted: , by Daniel P.

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Preliminary bill of materials for the iPhone 5 pegged at $168 before teardown
Apple is notorious for keeping costs down, while slipping just enough innovation with the newest iPhone to make the upgrade worth your while. Techinsights have come up with a preliminary bill of materials for the newest iPhone 5, and concluded it costs $168 to build one.

Of course, a more precise amount will be given when the first teardown appears, and it is know exactly what components are inside, so $168 is a very preliminary estimate. Those $18 for the screen look a bit cheap, while $28 for the A6 a bit steep for an in-house solution, but we should know more soon.

In any case, it looks like the iPhone 5 is more expensive to produce than the iPhone 4S, which is a no-brainer, but it still won't go too much above the $200 mark when assembly, R&D and sales/marketing costs are taken into account. That's exactly the usual ballpark for Apple, so even though this is the now-standard third-year design upgrade, Cupertino will still make out like a bandit, selling those at over $600 SIM-free.


Preliminary bill of materials for the iPhone 5 pegged at $168 before teardown

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posted on 14 Sep 2012, 03:43 18

1. XPERIA-KNIGHT (unregistered)


"Apple is notorious for keeping costs down"

wait whaaaaaa??? LMAOOO

was the first thing i seen and had to pause....

posted on 14 Sep 2012, 04:31 10

9. whysoserious (Posts: 317; Member since: 20 Jul 2012)


What's so funny about that? It's damn true.

posted on 15 Sep 2012, 09:19 1

33. CivicSi89 (Posts: 348; Member since: 23 Jul 2011)


gangnam style!!

posted on 16 Sep 2012, 20:23

34. Birds (Posts: 1027; Member since: 21 Nov 2011)


Psy!!!!!!

posted on 14 Sep 2012, 05:06 3

12. phljcnth (Posts: 294; Member since: 30 Apr 2012)


Suddenly I got confused with 'notorious' and had to consult the dictionary. I got more confused even.

posted on 14 Sep 2012, 06:29 1

18. whysoserious (Posts: 317; Member since: 20 Jul 2012)


"Apple has a bad reputation for keeping costs down"

posted on 14 Sep 2012, 07:59 5

23. tedkord (Posts: 5250; Member since: 17 Jun 2009)


They've gotta keep costs down. Lawyers charge like $1,000 per hour, and expert witnesses can be upward of $800 per hour.

posted on 14 Sep 2012, 08:12 3

24. -box- (Posts: 3876; Member since: 04 Jan 2012)


Not the selling costs, the manufacturing costs.

The problem I had though was this passage: "while slipping just enough innovation with the newest iPhone to make the upgrade worth your while", as it implies that I would be considering an upgrade to such a product and that each new product is somehow innovative (they haven't been in years). It should be reworded to "while slipping in just enough improvements with the newest iPhone to potentially make the upgrade worthwhile for potential buyers"

posted on 14 Sep 2012, 03:46 10

2. Savage (unregistered)


No wonder iPhone rakes 70% of market profit.

posted on 14 Sep 2012, 06:16 4

16. rahulzz (Posts: 9; Member since: 07 Sep 2012)


what do u think is the actual cost for S3??

posted on 14 Sep 2012, 06:58 1

19. jaoowolabi (Posts: 201; Member since: 07 Jun 2012)


well plastic is pretty cheap these days

posted on 14 Sep 2012, 09:09 5

27. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


but the s3 has much better tech inside, besides samsung supplies apple so if you call the s3 cheap whats the iphone?

posted on 16 Sep 2012, 22:44

35. jaoowolabi (Posts: 201; Member since: 07 Jun 2012)


supplies apple with A processor not their whole inventory to make an iphone.

posted on 17 Sep 2012, 06:30

36. chaoticrazor (Posts: 2347; Member since: 28 Aug 2012)


what does apple make in house then? for themselves.

you'll find most of the iphone is made up from other companys parts

posted on 20 Sep 2012, 21:29

39. viper1983 (Posts: 31; Member since: 03 Aug 2012)


Does it?

posted on 14 Sep 2012, 03:50 14

3. D.Aceveda (Posts: 366; Member since: 30 Jun 2012)


Apple being gritty and overcharging like CRAZY for their products.......You don't say?

posted on 14 Sep 2012, 03:50 10

4. valapsp (Posts: 484; Member since: 12 Aug 2011)


battery capacity has been decreased? Come on.

posted on 14 Sep 2012, 04:00 11

5. theindianguy (Posts: 90; Member since: 30 Sep 2011)


I know right? Yet people bash HTC for small batteries -_-

posted on 14 Sep 2012, 04:00 19

6. Jphones (Posts: 235; Member since: 10 Feb 2012)


OVER HYPED OVER PRICED GLASS CAN

posted on 14 Sep 2012, 04:19 10

7. lumialove (Posts: 75; Member since: 16 May 2012)


People don't seem to understand!
It's not that the iPhone 5 is a bad phone, its that Apple is selling you the same crap every year!(same thing with iPad2 and The New iPad).

Jesus! People drooling over it make me laugh so nice!

posted on 14 Sep 2012, 04:25

8. Vinayakn73 (Posts: 185; Member since: 05 Oct 2011)


mmmmmmmmm Not Again

posted on 14 Sep 2012, 04:37 3

10. eisenbricher (Posts: 972; Member since: 09 Aug 2012)


I dare you comment on this IFans! and I won't buy any crap like 'They deserve it' or 'Quality comes at price' talk.

posted on 14 Sep 2012, 05:01

11. jshan (Posts: 199; Member since: 25 Dec 2011)


Lol !!

posted on 14 Sep 2012, 05:06 2

13. jshan (Posts: 199; Member since: 25 Dec 2011)


Ok buddy can u uncertain the costs of other big smartphones like sgs3, htc x one , droid razor , lg Optimus 3D .. ?

posted on 14 Sep 2012, 06:17 1

17. rahulzz (Posts: 9; Member since: 07 Sep 2012)


what do u think is the actual cost for S3??

posted on 14 Sep 2012, 05:28 5

14. Nikolas.Oliver (banned) (Posts: 1574; Member since: 01 Jul 2012)


the only thing that makes iPhone so expensive is the profit for apple

posted on 14 Sep 2012, 05:55 2

15. Aeires (unregistered)


Tell me again why the manufacturing can't be done in the US, where Apple HQ resides?

Oh yeah, greedy share holders won't allow it.

posted on 14 Sep 2012, 07:00 1

20. jaoowolabi (Posts: 201; Member since: 07 Jun 2012)


what cell phone is made in the us? oh yea none....

posted on 14 Sep 2012, 07:01 1

21. Aeires (unregistered)


I see you get my point.

posted on 14 Sep 2012, 08:17

25. -box- (Posts: 3876; Member since: 04 Jan 2012)


There used to be. Motorola used to make (as far as I know, though I wasn't alive then) all their stuff in the U.S., and they still make some stuff here. Samsung opened up a huge expensive chip factory here within the last few months, I believe in Texas, so while not producing entire phones, at least they're creating manufacturing jobs, something apple hasn't done in the U.S. in over a decade. Not only that, apple abuses tax laws and gets out of paying taxes, and keeps its profits in offshore accounts to avoid taxes on that, too. I'll grant that many large companies do this, but it'd sure be great if they could contribute to taxes like regular citizens do. Maybe the government would have enough money to actually function without a deficit.

posted on 20 Sep 2012, 21:15

37. viper1983 (Posts: 31; Member since: 03 Aug 2012)


Yes, the deficit is apple's fault.

posted on 14 Sep 2012, 07:59 1

22. tluv00 (Posts: 134; Member since: 18 Oct 2007)


Ad in the cost of labor per device and that phone costs $168 to make.

posted on 14 Sep 2012, 08:57

26. darac (Posts: 2156; Member since: 17 Oct 2011)


Disgusting

Anyone paying 600 dollars for this product is saying - sure, Apple, here, make a fool out of me

posted on 14 Sep 2012, 09:21

28. gazmatic (Posts: 628; Member since: 06 Sep 2012)


http://www.isuppli.com/Teardowns/News/Pages/iPhone-4S-Carries-BOM-of-$188,-IHS-iSuppli-Teardown-Analysis-Reveals.aspx

an actual teardown... it costs apple $254 to make the iphone 4s 64gb version but they sell it unlocked for close to $830...

lumia 900 costs $209, galaxy nexus 7 cost $152 and kindle fire cost $202

the n8 and the iphone 4 cost the same at $197

galaxy sII skyrocket costs $244 and th galaxy note 10.1 costs $283

somehow i cant find the galaxy s3 but i assume its under $300

posted on 14 Sep 2012, 09:25

29. Berzerk000 (Posts: 4108; Member since: 26 Jun 2011)


The battery capacity? It's less? What was Apple thinking! LTE and a bigger screen, with a higher frequency proccesor that's most likely not A-15. Can't wait to hear the complaints on battery...

posted on 14 Sep 2012, 09:40

30. jibraihimi (Posts: 695; Member since: 29 Nov 2011)


Wooow selling 168$ gadget for more than 600$, only Apple can do such thing and come out trump even after this............

posted on 20 Sep 2012, 21:16

38. viper1983 (Posts: 31; Member since: 03 Aug 2012)


Would love to see the numbers for other "top" smartphones.

posted on 14 Sep 2012, 12:28

31. mas11 (Posts: 1032; Member since: 30 Mar 2012)


So the battery costs the same as previous models....

posted on 14 Sep 2012, 13:07

32. MrWilli5 (Posts: 74; Member since: 13 Feb 2011)


iphone 5 has a smaller battery smh

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