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

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.



Related phones

iPhone 5
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1440 mAh(8h 3G talk time)

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39 Comments

1. XPERIA-KNIGHT unregistered

"Apple is notorious for keeping costs down" wait whaaaaaa??? LMAOOO was the first thing i seen and had to pause....

9. whysoserious

Posts: 318; Member since: Jul 20, 2012

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

33. CivicSi89

Posts: 349; Member since: Jul 23, 2011

gangnam style!!

34. Birds

Posts: 1172; Member since: Nov 21, 2011

Psy!!!!!!

12. phljcnth

Posts: 553; Member since: Apr 30, 2012

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

18. whysoserious

Posts: 318; Member since: Jul 20, 2012

"Apple has a bad reputation for keeping costs down"

23. tedkord

Posts: 17312; Member since: Jun 17, 2009

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

24. -box-

Posts: 3991; Member since: Jan 04, 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"

2. Savage unregistered

No wonder iPhone rakes 70% of market profit.

16. rahulzz

Posts: 9; Member since: Sep 07, 2012

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

19. jaoowolabi

Posts: 201; Member since: Jun 07, 2012

well plastic is pretty cheap these days

27. chaoticrazor

Posts: 2347; Member since: Aug 28, 2012

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

35. jaoowolabi

Posts: 201; Member since: Jun 07, 2012

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

36. chaoticrazor

Posts: 2347; Member since: Aug 28, 2012

what does apple make in house then? for themselves. you'll find most of the iphone is made up from other companys parts

39. viper1983

Posts: 36; Member since: Aug 03, 2012

Does it?

3. D.Aceveda

Posts: 432; Member since: Jun 30, 2012

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

4. valapsp

Posts: 565; Member since: Aug 12, 2011

battery capacity has been decreased? Come on.

5. theindianguy

Posts: 90; Member since: Sep 30, 2011

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

6. Jphones

Posts: 256; Member since: Feb 10, 2012

OVER HYPED OVER PRICED GLASS CAN

7. lumialove

Posts: 75; Member since: May 16, 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!

8. Vinayakn73

Posts: 207; Member since: Oct 05, 2011

mmmmmmmmm Not Again

10. eisenbricher

Posts: 973; Member since: Aug 09, 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.

11. jshan

Posts: 200; Member since: Dec 25, 2011

Lol !!

13. jshan

Posts: 200; Member since: Dec 25, 2011

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

17. rahulzz

Posts: 9; Member since: Sep 07, 2012

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

14. Nikolas.Oliver

Posts: 1574; Member since: Jul 01, 2012

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

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.

20. jaoowolabi

Posts: 201; Member since: Jun 07, 2012

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

21. Aeires unregistered

I see you get my point.

25. -box-

Posts: 3991; Member since: Jan 04, 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.

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