The new iPhone 5 has all the bells and whistles that consumers were clamoring for last year, but has that extra year saved Apple some money? According of a provisional estimate of pricing from UBM TechInsights, the new iPhone has a bill of materials totaling $167.50. That’s not bad when you consider the iPhone 4S $649.00 at Apple Store was estimated to cost $188 at launch.This analysis is being done before the device has landed in the hands of anyone reckless enough to take it apart, mind you. UBM used the announced specs and chip branding, along with previous bills of materials to work out what the components are likely to cost. Some of the more pricey parts include the processor ($28), the radios ($25), and the display ($18).
When compared to the current cost of building the iPhone 4S, the iPhone 5 is quite a bit more expensive. The 4S bill of materials is down to $132 after a year of price reductions. All these analyses were done assuming a 16GB version of the device by the way.
When the device is released, firms like iSupply will surely crack the phone open to get a closer look at the exact chips being used. At that time, we’ll have a more exact estimate of the component cost. The 16GB iPhone 5 is going to be selling for $200 with a new 2-year contract, just like past iPhones have done. However, that’s not the full retail value. Unsubsidized iPhones start at $649.99. Even when you factor in manufacturing costs, that’s still quite a markup.
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