1. andyahs's Avatar
    Apple's new iPhone 4 costs nearly $20 more to make than its predecessor, the 3GS, but continues to maintain a high margin and rack up profits.
    Apple's iPhone 4 Costs $187.51 to Make - Mobiledia
    Last edited by andyahs; 06-29-10 at 08:36 AM.
    06-29-10 08:24 AM
  2. BatterdStarfish's Avatar
    Gah sucks. Link has a facebook link in so my computer wont open it.

    Can imagine its a good read though. Crazy cheap build price.
    06-29-10 11:05 AM
  3. andyahs's Avatar
    Gah sucks. Link has a facebook link in so my computer wont open it.

    Can imagine its a good read though. Crazy cheap build price.
    Sorry about that. Not a long article but could not believe how little the build cost was.

    Apple's new iPhone 4 costs nearly $20 more to make than its predecessor, the 3GS, but continues to maintain a high margin and rack up profits.

    Research firm iSuppli said the cost of materials for the iPhone 4 totaled $187.51. That compares with $170.80 for the 3GS. The estimates don't include manufacturing, software, marketing and other costs.

    Apple's 16-gigabyte iPhone retails for $600 without a plan, or $200 with a two-year contract from AT&T.

    The company said the higher-resolution touch screen display accounts for the priciest part of the iPhone 4, costing $28.50, or around 15 percent of the product's total bill of materials. Its speedy A4 processor, meanwhile, cost $10.75, while the flash memory, which has been in short supply, costs $27.

    "With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up its colossal cash reserve," said Kevin Keller, an analyst at iSuppli.

    Apple has consistently posted high margins, in part, due to the fevered demand for its devices. Earlier this week, the company said it sold 1.7 million iPhones in the first three days of its release, making it the most successful product launch in the its history.
    06-29-10 11:11 AM
  4. BatterdStarfish's Avatar
    Sorry about that. Not a long article but could not believe how little the build cost was.
    Thanks for putting it up for me mate.

    A short but good read. Id love to see how much one of our users could buy a screen for. I bet it would be alot more than what apple can buy them for haha.
    06-29-10 11:16 AM
  5. dcgore's Avatar
    ^^^right it's all about mass producing in relation to discount.
    06-29-10 11:22 AM
  6. Radius's Avatar
    They are charging a fair price. They really don't make a lot on them. It's like the products we make here, maybe $110 in parts and we charge about $1000 for them. We make profit but it's not huge.
    06-29-10 12:01 PM
  7. Totalimmortal363's Avatar
    Exactly. There is a lot more to it that just the cost of the parts.
    06-29-10 12:09 PM
  8. andyahs's Avatar
    They are charging a fair price. They really don't make a lot on them. It's like the products we make here, maybe $110 in parts and we charge about $1000 for them. We make profit but it's not huge.
    I agree. They are no different from any company, especially electronic/software company's. Market value has dictated prices and in this case it surely has not deterred Apple consumers.
    06-29-10 12:18 PM
  9. creepers's Avatar
    I wonder what rim devices are, 10.75 lol

    Posted from my CrackBerry at wapforums.crackberry.com
    06-29-10 01:41 PM
  10. tmp3150's Avatar
    If you believe this is the cost, then I have some swamp land in florida to sell you. Come on folks! If you are selling millions and millions of phones your cost is going to be near nothing for the phone. Some of you are just such saps and believe anything. I am sure if Apple paid retail for the parts and for one phone the cost may be accurate, but not after millions and millions of phones.

    The Iphone 3gs sold around 33.75 million iPhones sold to date (Q4 2009). You can't even begin to tell me that Apple isn't getting one **** of a deal on parts.
    06-29-10 10:44 PM
  11. deeddawg's Avatar
    Gawd I love these Internet Business "Experts", what a laugh.

    Parts cost is but one piece of the pie. There's also all the R&D, software development, technical support, warranty support, business overhead, and a zillion other costs that have to be recouped as part of every single unit sold. Does Apple make money on every iphone sold? Of course. Do they make $599-$188 on each one? Only in the minds of people with no knowledge of product development.
    06-30-10 01:03 PM
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