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  • Entry Level iPhone 5 Costs Apple $168

    Apple's new iPhone 5 is being dissected by an industry looking to explore just how much it costs the tech giant to produce its 6th generation iOS-powered smartphone.

    UBM TechInsights reports Friday that the iPhone 5 (entry level 16GB model) costs Apple $168. The most expensive components are those most visible to us given the new or tweaked features promoted at Wednesday's media kickoff.

    As we all know, the new iPhone 5 represents a significant redesign, at least with regard to the longer body of the handset. The iPhone 5 is the first of the iPhone line to move away from the traditional 3.5 inch screen.

    The latest iPhone now features a 4 inch Retina display with a resolution of 1136 x 640 and 326 pixels per square inch (ppi). Apple has also used this iteration of the iPhone to introduce their latest processor, the much anticipated quad-core CPU and quad-core GPU A6 processor.
    Its important to note that the $168 estimate could change once the device finally reaches the hands of someone who can physically dissect it. TechInsights is pledging to do a complete tear-down and analysis of the iPhone 5 on September 21, just as the Apple community gets their hands on the smartphone for the very first time.

    Source: TechInsights
    This article was originally published in forum thread: Entry Level iPhone 5 Costs Apple $168 started by Michael Essany View original post
    Comments 22 Comments
    1. iamutman's Avatar
      iamutman -
      Quote Originally Posted by norfskate View Post
      Bear in mind the costs of research and development, the wages etc of all the staff at Apple that design the final product.

      This breakdown only covers the hardware production costs of materials etc.
      This exactly. Also all overhead functions such as accounting, legal fees, advertising, marketing such as the events, employee compensation including health benefits, travel, taxes... Not to mention the estimated future cost of offering iCloud for life

      If you think these costs are not factored into the unsubsidized sales price, go take a basic managerial accounting course.
    1. Donnutt's Avatar
      Donnutt -
      Quote Originally Posted by bencjedi View Post
      I'm happy to see 1GB SDRAM!
      So am I! I got my preorder in six minutes after midnight. Can't wait!!