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iPhone teardown: $200-220 build cost

updated 03:00 pm EDT, Mon July 2, 2007

iPhone teardown

A teardown of Apple's iPhone by Austin-based Portelligent reveals a likely manufacturing cost of $200 for the 4GB model and $220 for the more expensive 8GB version, signaling extremely high margins for the Cupertino-based company which has already sold more than half a million units, according to one analyst. The iPhone includes a main microprocessor with an ARM core design and NAND flash storage from Samsung, NXP with another chip sporting an ARM core design, and power management chips from Philips, Texas Instruments, and Linear Technology, according to BusinessWeek.

Chips from Infineon, Skyworks, RF Micro Devices, and Marvell Technology supply the iPhone's wireless capabilities while other chips from Cambridge Silicon Radio enable the handset to connect to wireless headsets. The iPhone's chip that senses motion, which is called an accelerometer, is supplied by STMicroelectronics. Display chips are supplied by National Semiconductor, Broadcom, and NXP. The 2-megapixel camera mounted on the back of the iPhone is powered by an imaging chip from Micron Technology.




by MacNN Staff

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  1. testudo

    Joined: Dec 1969

    0

    Ah..

    But they aren't including in that the "three years in the making" R&D costs. Nor all the costs associated with various legal battles to keep it from leaking to the public (because, up until January, no one even came close to imagining a cell phone from apple!).

  1. OtisWild

    Joined: Dec 1969

    0

    profit

    So what does that come to for profit? Probably about $100M?

  1. PookJP

    Joined: Dec 1969

    0

    Other costs...

    ... come on, MacNN. That doesn't suggest extremely high margins at all. The development must have been tremendous, and let's not forget all that marketing.

  1. danviento

    Joined: Dec 1969

    0

    But eventually

    when all of those costs are covered by an even more tremendous number of sales, perhaps we'll see a price drop?

    I'm still holding out for that simple, large capacity, widescreen-video iPod. I hope someday soon if they get the kinks out of this leg of their business. But wasn't the iPod another one of those legs? Let's not let gout get to that important iPod leg, much less the most-important Mac leg.

  1. chucker

    Joined: Dec 1969

    0

    R&D

    hey, have you guys not been following,

    there were no extra R&D costs - they just took people off of other programs to get this done - that's why they've stopped innovating on everything else (Note to Steve - please prove me wrong!)

  1. David-0109

    Joined: Dec 1969

    0

    Note to chucker and other

    Do you all, and you know who you are, actually think that Steve Jobs or anybody else for that matter, from Apple INC. actually reads posts from Macnn? You're more than likely fooling your self's if you do.

  1. David-0109

    Joined: Dec 1969

    0

    *s

    My previous post's title should have ended with "others" and not other. Have a nice day.

  1. simdude

    Joined: Dec 1969

    0

    free labor?

    I didn't notice if that cost includes labor and shipping. I'm sure the people assembling are working for free and the airline/shipping company transport for nothing. It also didn't cost anything to shut down stores for hours without income to train and prepare employees. And the marketing/ads to bring in the customers was also donated. I think Steve actually gets to pocket the $380-$400 per iPhone himself actually. Everyone loves him so they donate all their work/time. Steve is great.

  1. LouZer

    Joined: Dec 1969

    0

    costs

    Um, do you people even come close to understanding what these guys do (which, BTW, they do with all of Apple's stuff). They tear down the item to determine the cost of the components. That's all. Nothing else. So it has 50% margins. They're not saying that's profit, just margin from cost of product to cost to consumer.

    Man, you all really need to stop looking at everything as if its a personal slap against you and apple.

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