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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. katrinaleone32's Avatar
      katrinaleone32 -
      it's very informative information about iPhone5 here. I am watching video at youtube but the video are not helpful. In this post describe everything very well.
      Thanks for the valuable information.
    1. fleurya's Avatar
      fleurya -
      I bet all the R&D and building, the production lines, production overhead, and human resources cost a crap-ton more than that!
    1. javiert30's Avatar
      javiert30 -
      Quote Originally Posted by fleurya View Post
      I bet all the R&D and building, the production lines, production overhead, and human resources cost a crap-ton more than that!
      You are right in some way, but remember they don't do an iPhone per hour... and almost everything is automated.
    1. SC10E's Avatar
      SC10E -
      Why do off contract phones cost so much if that's all they cost apple?
    1. adrian09's Avatar
      adrian09 -
      Quote Originally Posted by javiert30 View Post
      You are right in some way, but remember they don't do an iPhone per hour... and almost everything is automated.
      Even if they are automated it still costs money to produce. You have to buy the machines and then power them which will add to how much it costs to make
    1. AfterMercyFM's Avatar
      AfterMercyFM -
      The 5 has a smaller, albeit the difference is possibly negligible, battery than the 4S?

      That's unfortunate.

      I hope it runs a lot more efficient to compensate!

      Also, got my preorder in within the first 7 minutes. Looking forward to the first wave of shipments!
    1. tudtran's Avatar
      tudtran -
      I want to build my own iPhone. How cool would that be!
    1. norfskate's Avatar
      norfskate -
      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.
    1. JC86's Avatar
      JC86 -
      Quote Originally Posted by javiert30 View Post
      You are right in some way, but remember they don't do an iPhone per hour... and almost everything is automated.
      Yea, a lot of the production line is automated for precision work but keep in mind the equipment costs are astronomical. I remember reading an article in an Chinese biz magazine in which one small company sold to Foxconn (Apple's OEM manufacturer), 20,000 machines whose sole purpose was to cut and produce the iphone 4 antenna band. Each machine cost approximately, 300,000 USD. That's just for one of the parts that went into the iPhone 4.
    1. hitekksteff's Avatar
      hitekksteff -
      I thought the iPhone 5 battery was 1430mAh?
    1. bencjedi's Avatar
      bencjedi -
      I'm happy to see 1GB SDRAM!
    1. Illmatic636's Avatar
      Illmatic636 -
      I find this funny cause when I made the switch last year from droid to iP4s, I looked up the cost of making the 4s and it was $167.
    1. krayzeeman's Avatar
      krayzeeman -
      I bet all the legal costs of fighting Samsung, Motorola etc. are a significant part of the real price of the iPhones
    1. Gaijinboy's Avatar
      Gaijinboy -
      Not to mention... Shipping/logistics, PR/advertising, iOS development costs. The list is long and could be broken down to a per-device cost. R&D, electricity, equipment, and labor were already mentioned, I think.
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      Quote Originally Posted by SC10E View Post
      Why do off contract phones cost so much if that's all they cost apple?
      Cause that's the actual cost of the phone. The phone company pays those subsidies when you buy a new contract. Cause the companies will make more money off of your contract then what they pay for the phone.
    1. fredHD's Avatar
      fredHD -
      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.
      Agree man. Some people just don't think. It's the same for every company they must make a profit and pay their staff to.
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      Quote Originally Posted by fredHD View Post
      Agree man. Some people just don't think. It's the same for every company they must make a profit and pay their staff to.
      They pay their staff in preferred stock that can't be sold until 5 or 6 years down the road. I'm sure they get paid some, but most of their money will come from stock to insure that their employees stay with the company. They contract Foxconn mostly for making their iPhones.
    1. lungho's Avatar
      lungho -
      I absolutely hate articles like this because they are so misleading. Engineers and programmers don't come cheap and Apple employes an army of them. That's where a lot of the costs are.

      Of course, an article like this is meant to throw the trolls some red meat. Yeah yeah, I know I know.....I fell for it too.
    1. shark101au's Avatar
      shark101au -
      Quote Originally Posted by JC86 View Post
      Yea, a lot of the production line is automated for precision work but keep in mind the equipment costs are astronomical. I remember reading an article in an Chinese biz magazine in which one small company sold to Foxconn (Apple's OEM manufacturer), 20,000 machines whose sole purpose was to cut and produce the iphone 4 antenna band. Each machine cost approximately, 300,000 USD. That's just for one of the parts that went into the iPhone 4.
      The math doesn't make sense. That's a $6 billion dollar investment. The cost of those machines would be a fraction of that no more than 10-20 million. Making the antenna band is a very simple process.

      Quote Originally Posted by Scotty Manley Silberhorn View Post
      They pay their staff in preferred stock that can't be sold until 5 or 6 years down the road. I'm sure they get paid some, but most of their money will come from stock to insure that their employees stay with the company. They contract Foxconn mostly for making their iPhones.
      Actually they get paid very well. Stock is just a part of their package and by no means the largest part.
    1. Mrteacup's Avatar
      Mrteacup -
      1gb of ram YAHOO!!