iPhone 4S Components Priced Out: $188
iPhone 4S Components Priced Out: $188
Posted 10/20/2011 at 2:57pm
| by Ryan Whitwam
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As is customary, Apple’s newest mobile device has been torn asunder by curious gawkers in search of a cheap thrill. Also, they want to see what’s inside so they can price out components, but that is pretty thrilling. The iPhone 4S bill of materials was determined by iSupplyi to be roughly $188 for the 16GB version.
The most expensive part is, unsurprisingly, the touchscreen at $37. iSupplyi estimates that manufacturing costs are just $8 per device, so Apple pays less than $200 for the device, and it sells for $200 on contract. The 32GB and 64GB models were priced out at $207 and $254 respectively.
By sticking with a similar design, Apple has reduced the cost of building the device, and will likely enjoy more profit per phone. Considering the number of units moved, it’s going to be a good quarter for Apple.
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Htorne
October 20, 2011 at 6:44pm
What about patens, marketing, logistics, administration and R&D costs? Sure it might be worth $188 in raw components.
It seems very simpleton'ish to say that it 1 unit only costs $188 to produce and then directly think you can do the math and figure out how much evil empire Apple earns.
Htorne
/Denmark
rich5665
October 21, 2011 at 5:52am
"evil empire Apple"
Wow!! I remember when Microsoft was slapped with that title. In my opinion the iPhones 4S is not worth the hype it received. The "Evil Empire" just barely brought their product up to date. And as far as Siri is concerned it's not all that impressive either. Who wants an app that can allow some one access to a locked phone. I think Apple should have worked a little harder an pur a little more R&D into the iPhone and given the Fanboys what they wanted - The iPhone 5. But then again you could put an Apple logo on just about anything and the fanboys will think it's the hottest item in the world.
thetechchild
October 21, 2011 at 12:14am
Except we're talking about the iPhone 4S, which has negligible product value increase over the iPhone 4, and therefore was either a waste, or did not require much, of R&D, marketing, and patents. And you have to remember the ludicrous profits Apple gets from phone provider contracts, which must make up a large portion of profits from 2-yr contract discounts -- that money is just paid by the provider rather than the customer.
And of course, you have to realize that Apple sells millions of units... At $20-70 net profit per phone, that would quickly outpace development costs by boatloads. If it weren't true, Apple wouldn't be as successful as it is today.
Maybe it's an inaccurate measure of the overall profit of Apple, but it definitely reflects that Apple is getting a LOT more money than it needs to sustain itself, by overpricing its products to some extent.
groganre
October 21, 2011 at 5:48pm
Apple makes exactly $0 from carrier contracts. That ended a long time ago. They make money from selling the phone to the carriers and they recoup via the contract everyone signs. Do some research first, this hasn't been true for a few years now and Apple makes so much money because people buy their stuff, same as any other business. Whether you like/hate what they make is irrelevant, they succeed because they make products that people want and will pay for. Any by any measure, they are a smashing success no matter how many insults are thrown their way. So everyone getting their panties in a knot about Apple is a humorous waste of energy.
I wish people, here especially, would quit being childish and petty over a product they don't like to the point where they insult and hate people they don't even know.
Endoplas
October 20, 2011 at 6:23pm
i personally believe that selling the phone for 600 is very reasonable comparing to other commerically available devices. it is pretty common for merchants to sell their stuff for double/triple the cost they bought them for wholesale (sometime more).
livebriand
October 20, 2011 at 4:15pm
So if it's worth $188, why the hell is the unlocked version $600?
Caboose
October 21, 2011 at 10:34am
And because they know that the sheeple will eat it up at that price. Because hey, if it wasn't an iDevice, it wouldn't command such a high price. And as EVERYONE knows, more expensive ALWAYS means better.
Right?
groganre
October 21, 2011 at 5:50pm
Wrong. Buy any smartphone of that quality and specs and it'll cost you about the same off contract.
DoubleR
October 20, 2011 at 6:04pm
So what what does it price out for the memory pop to 64, I bet $204
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