With Apple's two new iPhones reaching consumers, teardowns of the two were bound to happen. AllThingsD had the pleasure of doing them iFixit style, and ran cost-estimations for each of the components it dug up, adding them with assembly costs. Apple is making a killing.
To begin with, the iPhone 5S, with its swanky new Apple A7 SoC that combines 64-bit ARM cores, with a powerful new GPU, and LTE world-ready soft-modem; along with the M7 sensor chip, and fingerprint sensor; together with other components, barely add up to $199 for the 16 GB model, and about $210 for the 64 GB model. If you add the $8 it takes to put it all together, the iPhone 5S tops out at $220. Compare that to the $900-ish costs of the top-end variant. Apple is clearly making killing here. If you add to that the 2-year contract you have to sign, on top of $399 upfront for the 64 GB variant, Apple and its carrier partners together, are making near 300 percent profits after paying off necessary taxes.
Moving on to the iPhone 5C, the plastic-built phone has innards practically identical to last year's iPhone 5, and its plastic shell only makes things cheaper. When you add them all up, it costs an estimated $173 for Apple to make the 16 GB variant, and $183 for the top-end 32 GB variant, with an added $7 assembly cost per piece, the manufacturing costs shouldn't exceed $190. Here, too, Apple and its carrier partners are making a killing, selling it for 75 percent the costs of the equivalent variant of the iPhone 5S.
You can check out the teardown, and research firm IHS' component-cost analysis here.
|Topics||iPhone 5, Apple, iPhone, iPhone 5S, iPhone 5C|