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Latest iPhone cost estimate comes in at $30 bucks

Posted: , posted by Charlene S.

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Latest iPhone cost estimate comes in at $30 bucks
With the help of additional information brought to light by an ABC Nightline report that covered Apple’s manufacturing partner, Foxconn, Asymco analyst Horace Dediu has taken a second look at the iPhone manufacturing process and determined that the device costs a little more than previously assumed to make.

Previous estimates, based entirely on hardware teardowns, thought that the iPhone cost about $8 a unit to produce. Breaking down the 24 hours that it has been previously reported that the iPhone takes to build, Dediu accounted for the potential human labor hours involved and multiplied those estimates with the labor rates reported by ABC, which were $1.78 an hour.

Using that information, he has estimated than an iPhone costs roughly $30 to produce. He does note, however, that there is an additional $60 associated with each device to account for transportation and warranty expenses.

Even with the most conservative estimates, we know that an iPhone generates about $650 on average, so however you slice it, the iPhone is a high margin device for Apple.

source: Asymco via SlashGear

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