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iPhone 4S 32GB raw parts cost pegged at $203

updated 10:40 pm EDT, Tue October 4, 2011

UBM estimates iPhone 4S costs on unveil

UBM Techinsights gave a preliminary cost breakdown of the iPhone 4S. Based on past history and estimates, it reckoned Apple's new phone would cost $203 in pure components for a 32GB version. The most expensive component would be the flash memory itself, at $38, followed by the 640x960 display ($31) and the dual-core A5 chip ($26).

Going dual-mode with both CDMA and GSM only cost Apple a $6 premium over the GSM-only iPhone 4. Apple also would have only paid $3 more for the eight-megapixel camera.

A similar breakdown showed that the cheaper 8GB iPhone 4 might be sold on considerably tighter margins. Although the A4 and other components cost less than they did when new, the phone was still expected to carry a minimum $156 price. Apple is still making a clearer profit on both after factoring in carrier discounts as well as its own extra costs, such as marketing and development, but is willing to sacrifice some profit for the $99 price.

Prices to make 16GB and 32GB versions weren't mentioned but aren't likely to reflect the $100 differences that customers pay.

The costs are preliminary and will have to be checked against real devices. They still help support Apple's decision to skip LTE and WiMAX 4G. For the same amount of space, HTC's Thunderbolt costs $262 to include an LTE chipset and bigger battery with a processor slightly slower than in the iPhone 4, no dual-mode, and with a lower-resolution screen. Current-generation LTE needs a secondary, discrete chipset.





By Electronista Staff
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Comments

  1. facebook_Angelina

    Via Facebook

    Joined: Oct 2011

    -5

    Saqib Imran

    Pretty Nice post very informative as well as very precsize about the some very normal or abnormal things according to the Peoples mind but in the People will buy the new iPhone4s I am sure about it.....!!!!http://www.saqibimran.com/

  1. chas_m

    Moderator

    Joined: Aug 2001

    0

    Disclaimer omitted

    Articles of this type should always carry the disclaimer that the raw BOM on a device is only a fraction of its true cost --distribution, development and research and advertising (among other costs) play a HUGE role in the total average per unit, though the BOM is a key element of course.

    Sadly, I have actually heard people who exclaim about how Apple is ripping us all off and when you ask them why, they cite the BOM as the total cost of the iPhone.

  1. facebook_Robert

    Via Facebook

    Joined: Oct 2011

    0

    maybe they should cite $90 billion in profits

    Look chas, I agree that the BOM isn't the only cost. On the other hand, Apple didn't get $90 billion by accident.

    They do have a premium price. I would never say they ripped anyone off, you either pay the premium or you don't. But probably that's all those people were expressing - their choice not to pay the premium.

    As for me, I'll pay the premium if its worth it - if it increases my productivity to pay a little more, then that's worth the cost.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: Disclaimer omitted

    Articles of this type should always carry the disclaimer that the raw BOM on a device is only a fraction of its true cost --distribution, development and research and advertising (among other costs) play a HUGE role in the total average per unit, though the BOM is a key element of course.

    Um, it specifically states that this is the cost of the materials used in the iPhone. Do you want it to also say it doesn't cover the cost of Apple's health care plans, the money paid to lobbyists for political purposes, and the cost of water used to flush the toilets in the board room?

    Bear in mind the costs you cite are 'fixed', in that they are already done. So, if Apple takes in $600 per phone, analysts can determine how well Apple is doing financially based on sales (so, for example, if they sell only 1 million phones in this quarter, that's not a good ratio to cover costs, vs, say, selling 10 million).

    Why is it that every time this same article is done (which is done for repair shops and analysts so they know how much to expect to pay for replacement parts for these things) that there's always several people who feel the need to point out to someone (not sure who) that these numbers don't actually mean anything. It's like they think people are going to think that Apple is gouging it's customers and a rebellion is going to happen if they don't speak up.

    But good job, chas, on stopping the rebellion. People may now buy the iPhone knowing it's really costing Apple more to develop it.

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