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  • iPhone 3G[S] carries a $178.96 BOM says iSuppli
    The new 3G[S] has been ripped apart and a Bill of Materials (BOM) has been put together outlining individual parts and their cost to Apple.

    Interestingly the now "base" model 16gb version runs almost the same build cost as last years 3G. And although you would think for this reason and obvious "at first glance" conclusions that most internals have been kept from the previous 3G....that is actually not the case.

    The entry-level, 16Gbyte version of Apple Inc.ís new iPhone 3G S carries a BOM cost of $172.46 and a manufacturing expense of $6.50, for a total of $178.96," said Andrew Rassweiler, director and principal analyst, teardown services, for iSuppli. "This is slightly higher than iSuppliís estimate of $174.33 for the original 8Gbyte iPhone 3G based on pricing in July 2008. Although the retail price of the 16Gbyte iPhone 3G S is $199, the same as for the 8Gbyte version of the original iPhone 3G, the actual price of the phone paid by the service provider is considerably higher, reflecting the common wireless industry practice of subsidizing the upfront cost of a mobile phone and then making a profit on subscriptions.


    You also have to remember Apple's agreement with AT&T provides Apple with a tidy profit margin including dipping into service plan income.

    See the full iSuppli article here
    This article was originally published in forum thread: iPhone 3G[S] carries a $178.96 BOM says iSuppli started by cpjr View original post
    Comments 26 Comments
    1. kevinsickles's Avatar
      kevinsickles -
      Numbers are Bogus, Amazing How many people just believe without questioning.
      Where is the battery?
      Where is the Case?
      Where are the estimates for Software Development?
      Which components were designed specifically for the Iphone and Apple paid for the design??

      I have no doubt Apple is making a great profit on the Iphone, but accepting this analysis as the cost basis is silly.
    1. cpjr's Avatar
      cpjr -
      ^Maybe you didnt read the article thoroughly.

      This is a BOM, they only inlcude (as stated on the top of the list) major cost drivers for hardware.

      Both the battery and housing for example cost Apple pennies. Not worth including. Also, this is only a "hardware" cost analysis as stated.

      So its not gonna include software development, etc.

      But..I agree people need to remember this isnt a total cost of production to Apple
    1. badass1469's Avatar
      badass1469 -
      just beacause they make a little bit of profit from the iPhone itself, don't forget about the 1 billion apps sold and downloaded at 30% revs. for every one. Even though half are free lets say 500 million for 1 dollar per app at 30%(most of the paid apps are above $1.99).
      500,000,000 X 30%(.3)= 150M. They didn't even do anything for this extra money, apple has other unpayed people make(ing) apps for them, they only get paid if their app(s) actually make it to the app store.
    1. cpjr's Avatar
      cpjr -
      Sounds like Apple is got a pretty smart plan going. So people are getting mad because they are a successful company? The same ones complaining are the same ones contributing to their success, lol.
    1. mikerlx's Avatar
      mikerlx -
      Charging for Assembly?? You don't need to pay a robot.
    1. nimavafi's Avatar
      nimavafi -
      Quote Originally Posted by mikerlx View Post
      Charging for Assembly?? You don't need to pay a robot.
      True, but you do need to depreciate the costs of the machines over a time period. Lets not forget maintenance, monitoring, and management of the systems and operations...