An initial estimate computed by research firm UBM TechInsights has revealed that it could be costing Apple Inc.(NASDAQ:AAPL) $167.50 to produce one iPhone 5 costing $199 and having a 16GB memory. The firm has arrived at this figure after breaking up the cost of each component used in manufacturing the phone.
Below is a list of some of the components along with the prices:
· The new 4-inch 1136x640 pixel display costs $18
· The touch screen comes at $7.50
· One battery unit is priced at $3
· $28 for the A6 processor
· The camera comes to $10
· The built-in WiFi/Bluetooth/GPS is $4
If the prices of other components are included with the ones above, then the BOM (bill of materials) come to $167.50. The predecessor of iPhone 5, which is the 16 GB iPhone 4S would cost Apple $132.50 to make and the older 16 GB iPhone 4, is priced at $112. All components for iPhone 5, barring the battery and the NAND flash storage, costs much more than the earlier models.
Will AAPL Really Hit $1000 By This Year? Don’t Miss Our Special Report Here
The BOM estimates for iPhone 5 are still at an initial stage because the device needs to be analyzed more internally in order to come up with more accurate figures. TechInsights will open up the iPhone 5 after it hits the shelves and analyze the inside components and parts more precisely.
The higher-end models of iPhone 5, the 32 GB and 64 GB, are priced at $299 and $399 respectively. All 3 models come with the standard two-year contract. Pre-orders are pouring in already. However, some customers have faced issues while ordering the product from third party retailers and many more have to wait for two weeks for the phone to be shipped.