A $849 64GB iPhone 5s only costs Apple $218 to build

  • Replies:1
Vortex Art
  • Forum posts: 18

Oct 26, 2013, 6:27:08 PM via Website

The iPhone is a flagship handset, and as such it commands a flagship price. But one other thing that's flagship about the new iPhone 5s is the margin it pulls in for Apple.

According to a teardown analysis carried out analysts at IHS, a top-of-the-line 64GB iPhone 5s, which retails unlocked for $849, costs Apple a mere $218 to build, a price that includes the manufacturing costs.

The build price difference between this and the 16GB iPhone 5s is less than $20, and yet Apple charges consumers a whopping $200 for the extra 48GB of storage.

The single most expensive component inside the new iPhone 5s is the display assembly, which costs an estimated $41, while the wireless assembly costs an additional $32.

The sensors, which includes the gyros, compass, accelerometer and fingerprint reader only costs Apple $15, according to IHS, while the A7 and M7 processors are another $19.

Reply
Amy R.
  • Forum posts: 238

Oct 26, 2013, 6:39:54 PM via App

Wow! I realized that Apple has to make a profit in their products but didn't realize how much profit they actually make! Unbelievable that it also includes the cost of labor. They boast about the cost being do to their high quality................

— modified on Oct 26, 2013, 6:40:32 PM

"You're Probably Wondering Why I'm Here & So Am I" - FZ

Reply