Apple iPhone 4 Parts Cost $187.51, Analysts Say

SEATTLE — Apple Inc.'s new iPhone 4 costs almost $20 more to make than its predecessor, the iPhone 3GS, but the device will still help the company continue to rack up high profits, the research group iSuppli said Monday.

The iPhone 4 went on sale June 24. After taking this latest Apple gadget apart and identifying the components, iSuppli estimated the cost of the parts totals $187.51. That's more than the $170.80 iSuppli estimates for the cost of the materials inside the iPhone 3GS, Apple's last-generation smart phone.

The estimates don't include manufacturing, software, marketing and other costs.

The priciest part of the iPhone 4 is the new, higher-resolution LCD screen, which iSuppli estimates carries a cost of $28.50. Flash memory, which has been in short supply, costs $27. Apple's processor, which was manufactured by Samsung, according to iSuppli, costs $10.75, and the capacitive touch screen costs $10.

Apple's iPhones cost consumers $199 or $299 with a two-year wireless contract in the U.S., but such low prices as those are heavily subsidized by the wireless carriers.

Despite the major design overhaul Apple gave the iPhone, the gadget maker "will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve," said Kevin Keller, an iSuppli analyst, in a statement.

Comments

[MS Patrick]

08:29 PM on 07/06/2010

Hey guys, just found out this great site that teaches on how to create softwares for your iphones. So, if u've got some kinda idea, wouldn't it be nice to have a software on your phone that no one else has??? I checked this site and it was almost the best thing I've done in a long time, trust me :-) http://ce5b2byeknsel4aaubrridoc05.hop.clickbank.net/?tid=DFONE1

[LightShadow62]

11:01 AM on 07/01/2010

Interesting note about the picture that is attached to this article.

Notice that Jobs is holding the phone only by the top and bottom. Why such an unnatural grip? Is this the approved way to hold an iPhone4 Mr Jobs?

[hypnotoad72]

05:16 PM on 06/30/2010

In Apple's defense:

(a) Every company gets low prices when buying in bulk
(b) Other companies subsidize costs by installing 'crapware' (adware, preinstalled garbage, etc)
(c) R&D costs go into the price people pay for
(d) The phone carrier subsidizes costs for new customers - hence the "Only $250 if you sign up for a 2-year contract!" marketing song and dance)
(e) Along with R&D, somebody has to pay the programmers to do their work and the programmers are probably only as good as the pay they get, but I digress

And other factors.

I won't chide Apple on this issue. Others can.

[bmora]

02:54 PM on 06/30/2010

For all you Iphone users: http://www.collegehumor.com/video:1938055

[Androidomania]

04:02 PM on 06/30/2010

see also MAD MAGAZINE.

[Chaesonian]

02:28 PM on 06/30/2010

Ugh and my iPhone still hasn't come in...

[Androidomania]

04:04 PM on 06/30/2010

YOUR LUCKY. Froyo is now available and apparently rocks. the iphone is so passe
.........not even 4G...........hehehehe

[microsoap]

02:22 PM on 06/30/2010

Google Android Sales Reach 160,000 A Day; Growing By 60 Percent Every Month
http://paidcontent.org/article/419-google-android-sales-reach-160000-a-day-growing-by-60-percent-every-mon/

[paulbenjouse]

02:16 PM on 06/30/2010

Let the iPhone 4 returns begin. Too many issues with the device will have scores of buyers returning them. Anyone for a "refurbished" iPhone4?
Given Jobs refusal to admit any flaws ... caveat emptor.

[microsoap]

02:18 PM on 06/30/2010

"The emperor has no clothes!" But the fanboys are too busy making excuses and deflecting.

[Androidomania]

04:01 PM on 06/30/2010

RIGHT NOW THEY no doubt have concluded the DUMP of the inventory
which they knew full well was defective worked, and the COVER UP
STAGE can be dragged out during the JULY DOLEDRUMS. but
its clear at a certain point
full unconditional refunds will be offered, perhaps as a way of
working around the embarrassment of a total recall. this will become
cleear in a few days. the more people move around and find
they can neither transmit or receive a signal with sufficient strength
to use it as a phone, the stronger the sentiment of having been
frauded. this will be stronger among first timers. upgraders
will be slower as they are most hypnotized and the lowest in iq.

[hypnotoad72]

05:21 PM on 06/30/2010

That is good to read, thank you. Do you have a link?

[microsoap]

02:13 PM on 06/30/2010

Break Down Of Where Your Money Goes (Infamous Apple Tax):
http://tinypic.com/r/1z3mbzt/4

"Drink The Kool-Aid":
http://tinypic.com/r/4lr8fl/5

[Deeanna Harrington]

01:30 PM on 06/30/2010

The biggest cost of the iPhone and iPad is all the flash content you miss out on! Anyone else sick of missing chunks of web pages??

Deeanna
http://www.pups-seeking-home.com
http://www.pups-seeking-home.com/blog

[Androidomania]

03:54 PM on 06/30/2010

The IPAD is a piece of junk, only showing a filtered web. AWESOME attempt to
channel all surfing to the itunes page and cash flow into APPLE. this is well
known. 99 PERCENT OF WHAT IS IN FLASH IS FREE.
..............COMPOUNDING THIS is that
ipaders can't even their open their email which has links that require flash.
FILTERED EMAIL is no email.

verdict by anyone with a three digit iq.....the ipad is just for 3 years olds, an expensive baby sitter. anyone who uses email will HATE IT from DAY ONE. SECOND ONE.
IPAD AS TOTAL JUNK........................FOR 3 YEAR OLDS

[zorro869]

04:04 PM on 06/30/2010

Nope. Flash sucks. No one will remember it after HTML5.

[Androidomania]

04:28 PM on 06/30/2010

EVERYONE knows you know nada about it at all. nada,,,,,,

people who want to read their email need FLASH
THOSE WHO USE IPAD are
fooling themselves, rationalizing a stupid purchase decision.
lying to yourself is very common. ipad buyers are exemplars of bad faith

[LemonMeringue]

10:03 AM on 06/30/2010

Look at the chart for AAPL stock. (Just type AAPL into Google search.) They must be doing something right.

[jsgaetano]

12:32 PM on 06/30/2010

Making over 300% profit on everything they make tends to do that.

Investors sure are loving the Apple Tax!

[LemonMeringue]

10:02 AM on 06/30/2010

iPhone only works with evil companies so far. From Credo's recent email:

* If you're with Verizon Wireless, you should know they donated to Senator David Vitter (R-La.), who later urged President Obama to expand offshore oil drilling even after the devastating spill in the Gulf.

* If you're with AT&T, you should know that since 1998, they've contributed $23,000 to Senator Tom Coburn (R-Okla.), who “favors the death penalty” for doctors who perform abortions. They've also given more than $300,000 to the election campaigns of Texas Gov. Rick Perry, who downplayed BP's heinously negligent oil spill as an "act of God."

I won't get iPhone until they use a more responsible carrier.

[fortyfiveseventy]

07:49 AM on 06/30/2010

I was a lot happier when Steve Jobs was supposedly retiring for "health" reasons. PCs are just as good as Macs and cost about 1/3. Eventually Apple is going to be sunk when their products become fully commoditized, just like they did in the early eighties. Then Apple will go back to being a $10 stock that no one owns.

[LemonMeringue]

10:01 AM on 06/30/2010

PCs are not as good as Macs, just cheaper.

[Eris23]

10:18 AM on 06/30/2010

Macs are PCs.

[Core-Sample]

10:39 AM on 06/30/2010

PCs are as good as Macs. It just just depends on what you want to use it for. I run Ubuntu and Windows on my PC, so it's cool with me. No huge complaints with Mac or PC. (besides Windows viruses, but I've never had one...knock on wood). I learned how to use a computer on an Apple in 1991.

[LemonMeringue]

10:05 AM on 06/30/2010

Well I have made 32x my investment on AAPL in a decade or so They've been around a long time and they always, always, always come back.

[norkas]

06:03 AM on 06/30/2010

I have 2 macs and one that is not that I curse everyday. I have the same problems that many have and that those that are not macs are way to slow. I have a dell in which soon I will do a u tubes SMASH with a 10 LB. sledge hammer and will call going insane.

[DRaymond]

04:47 AM on 06/30/2010

Photo Caption: "See, look, four bars. The users are just holding it wrong. They need to hold it like this."

[derickma]

12:42 PM on 06/30/2010

or they just need one of these http://jobs.apple.com/index.ajs?BID=1&method=mExternal.showJob&RID=47090&CurrentPage=1

[lalin vong]

03:18 AM on 06/30/2010

I am one of Mac fan. I love apple products except Ipad. I find out ipad is boring. Recently, I am waiting for Iphone 4 available in Cambodia.