Samsung makes 26% of the iPhone 4's components, says infographic

Samsung makes 26% of the iPhone 4's components, says infographic
Samsung makes quite a share of the bits and pieces that go into Apple's high-margin iPhone 4, and the infographic on the right shows exactly how much of the handset is manufactured by the Koreans.

The RAM and internal memory chips, as well as the A4 chipset, i.e what makes the handset tick and remember stuff are all done by Samsung, and these make for 26% of all iPhone 4 components' cost. The silicon is Apple's own design, based on the ARM Cortex-A8 architecture, bearing a lot of similarities with the Hummingbird chipset, since both were developed based on intellectual property by Intrinsity, a company that Apple bought.

The 3.5" Retina Display is marked as made by "unknown manufacturers" in the infographic, but it's been widely suggested that the 640x960 pixels LCD screen is manufactured by LG, with possible support from Toshiba Mobile Display.

Given the ongoing legal spat between Apple and Samsung, the fruit company is trying to break away from reliance on the Koreans to manufacture its silicon. We don't know about the flash memory chips - there aren't many companies that can produce them with the high quality and volume Apple demands, but Cupertino has already begun testing the A6 chipset production in the TSMC foundries, so for the next iPhone it will probably have broken up with Samsung for the large part.

The infographic suggest that the iPhone 4 costs $178 to make, when you add the Foxconn assembly and its 7% profit margin, but it will actually cost even less to produce now, a year after introduction, as the components have fallen in price. Apple sells it for three times that and even more on average, plus marketing, packaging, and R&D are not adding much more to the costs, resulting in the lustworthy profit margins that Apple collects from this gadget.

source: Economist

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22 Comments

2. 1701nino unregistered

Apple will ditch Samsung for good!!!

23. dshiller

Posts: 1; Member since: Apr 20, 2013

lol you mean other way around. The reason the ipad mini had a shortage is because samsung said they were not going to produce as many parts for the mini.,ultimately screwing apple

3. belovedson

Posts: 1061; Member since: Nov 30, 2010

Someone will copy Samsung and they will be sued. wait and see

4. xenover

Posts: 174; Member since: May 27, 2011

i hope samsung won't stoop to Apple's level.

5. GJanee

Posts: 214; Member since: Jun 29, 2011

well... some more lawsuits, and there won't be any "apple" A6 processors or memory or anything. fruityguys aren't so creative to make something as powerful and useful as Samsung parts. so maybe they should cherish the moments that someone gives them the opportunity to power up their shizzles...

6. andro unregistered

the one main part of the iphone which is apples design is the antenna and we 've all seen the trouble with that........ooops scratch that people were just holding their phones the wrong way!

7. AppleFUD unregistered

That about sums it up. Apple no longer builds anything or creates anything, they are pretty much a design company in every way thus we see ridiculous patents from them all the time for things they have never developed, tested, and will most likely never. . . they've taken the patent troll road because they are nothing more than a design company and that's really the only option they have. What else can you do when you are just pulling parts off the shelf from other companies and putting them together into your own designed plastic & aluminum shells?

11. stealthd unregistered

Uh...no. The patents Apple is suing over are patents used in the iPhone and the iPad. Saying they "no longer build or create anything" and "[they] are just pulling parts off the shelf" just goes to show you have no idea what it takes to design a product.

13. ztedac

Posts: 69; Member since: May 17, 2010

tell you what, go think of a design (brainstorming) go patent it then sue them for money no effort needed and that's what the fruit company is doing they might thought of those 'designs' when they were having a drinking party and oh, how did you know that it's not the other company thought of the design and suggested to the fruit?

17. stealthd unregistered

What part of "The patents Apple is suing over are patents used in the iPhone and the iPad" don't you understand? Patent trolls don't make products, which is why only the naive call Apple a patent troll.

8. TKFox007

Posts: 303; Member since: Nov 02, 2010

You'd think Apple wouldn't sue the people that makes their iPhone parts. That slap in the face would make anyone angry. And you wouldn't want to make the people who make your parts angry, cause they may just slip a bunch of defective parts in those shipments.

12. darth8ball

Posts: 520; Member since: Aug 02, 2011

I don't think you understand business. No Sammy is not going to ruin their reputation by slipping in bad parts. Slap in the face, a little but this could be a negoitiation technique for a parts contract that might be ending, who really knows the real reasons, not us for sure

9. luis_lopez_351

Posts: 951; Member since: Nov 18, 2010

isheep have no right to brag about their quality product. lol

10. stealthd unregistered

So what you're saying is Samsung doesn't make high-quality parts. Got it.

15. heh unregistered

How stupid can you get? What luis_lopez_351's saying is you can't brag about something you didn't build in the first place. Like bragging about the Retina Display when it's Korean-made and not Cupertino-made. C'mon! We all know Apple's all about the software and user experience + overall aesthetics. I'll give you that, I actually like iOS' snappiness and iOS devices' design. And Apple's responsible for those. But PARTS?? C'mon man!

16. stealthd unregistered

Who makes it has nothing to do with the quality of the product itself.

19. Si_D unregistered

Did you really write that? Really? *shakeshead*

14. ztedac

Posts: 69; Member since: May 17, 2010

the fruit tree is what the chinese phase called 'cross the bridge first, tear down the bridge right after' so no one can cross

18. ridania unregistered

Yes the Retina screen is built by LG, and they recently said that some other phone makers will include LG Retina display in their phones. Very funny to see LG considered as an "unknown manufacturer". The touchscreen accounts for 38.50. So we can guess that LG makes at least 22% of the Iphone 4. Very biased presentation (who payd for this study ?).

21. terrylou unregistered

Considering you can't correctly spell "Paid", it's bad form for you to call the writer's integrity into question.

20. Bofo unregistered

Sharp I believe make a lot of the Retina displays.

22. Sam unregistered

iPhone user must shock knowing that memory that makes iPhone remember things and high speed smooth processor made by Samsung. Apple only makes iOS operating system and device design. I own both iPhone 4 and Samsung Galaxy S 2 and this make me proud to choose Samsung Galaxy S 2 as my third Smartphone.

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