The Cost of the iPhone

By Butterboom Writers  /  January 21, 2007

A Breakdown of the Parts and Costs of the new Apple Supreme Gadget


BusinessWeek has a neat run down on the cost of the pieces that will make up the iPhone coming to the U.S. in June. Hong Kong won’t see this revolutionary new mobile device until 2008 but in a way that means there might be a new version by then as well as – oh – about 300 copies of it from various other companies.

us iterations of the iPod, the Xbox 360, and the PlayStation 3, iSuppli analysts have relied on intelligence gathered among component manufacturers, published price sheets, and industry insider information to estimate the manufacturing cost of the iPhone. Adding up the cost of all the parts that Apple is expected to use in the device suggests it will cost about $230 to build the 4GB version that will sell for $499 and about $265 to build the 8GB version that will sell for $599.

The single most expensive part will be the 3.5-inch touch-sensitive display, which iSuppli says will cost $33.50, while the combined cost of the NAND-type flash memory chips—probably supplied by Samsung—will run $35 to $70, depending on the model.

Read the full story here.


Leave a Reply