Badder, faster iPhone 3GS costs $179 to build
Although the baked cost is marginally higher than last year’s 8GB iPhone, today’s product is much faster, and offers double the memory and storage capacity while maintaining Apple’s profit margins. All told an admirable feat in the face of increasing competition on the hardware front.
ISupply has announced the results of its iPhone 3GS tear down analysis, which pegs the combined manufacturing ($6.50) and parts ($172.46) costs at $178.96. The original iPhone was believed to have cost around $220 to make and the iPhone 3G cost about $173.
“From a component and design perspective, there’s also a great deal of similarity between the 3G and 3GS,” says Andrew Rassweiler, director and principal analyst, iSuppli. “By leveraging this commonality to optimize materials costs, and taking advantage of price erosion in the electronic component marketplace, Apple can provide a higher-performing product with more memory and features at only a slightly higher materials and manufacturing cost.”
Individual part cost estimates:
• Toshiba 16GB multilevel-cell NAND flash memory, $24
• Toshiba 3.5″ display module, $19.24
• Toshiba touchscreen assembly, $16.00
• Samsung ARM processor, $14.46
• Infineon baseband processor, $13.00
• Infineon camera module, $9.55
• Samsung SDRAM, $8.50
• Broadcom Bluetooth/FM/WLAN chip, $5.95See also:
— Video: iPhone 3G S full monty tear down
— Apple says, ‘Yes, we know AT&T sucks. Here’s $30 for your trouble …
— Mobile Safari 3.0: Just faster isn’t enough
— iPhone 3G S OpenGL performance rocks
— Is the cost of upgrading to iPhone 3GS too high?
Although marginally more expensive than last year’s estimated iPhone 3G cost, it bears remembering that Apple’s newest handsets include a much faster processor, graphics, double the RAM and double the storage capacity. Thereupon, it would seem that the mothership has rung considerable efficiencies from its supply chain while putting out a benchmark hardware platform that maintains their enviable margins.
Apple executing like mad men (it’s a beautiful thing)…
What’s your take?
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June 25th, 2009
Even thoe the hardware may cost them $179, however they start out in a huge hole as the first iPhone cost them millions as they have to pay for things like: development, testing, advertisements, and the machinery to build them in mass quantities.
June 25th, 2009
Even thoe the hardware may cost them $179, however the actual cost is much higher as they start out in a huge hole because the first iPhone cost them millions. Why? Well they have to pay for things like: development, testing, advertisements, and the machinery to build them in mass quantities.