iPhone costs $173 to make, says iSuppli
The latest iPhone has a Bill Of Materials and manufacturing cost of $173, according to a preliminary ‘virtual teardown’ conducted by iSuppli.
“At a hardware BOM and manufacturing cost of $173, the new iPhone is significantly less expensive to produce than the first generation product, despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications,” said Dr Jagdish Rebello, director and principal analyst for iSuppli. “The original 8Gbyte iPhone carried a cost of $226 after component price reductions, giving the new product a 23% hardware cost reduction due to component price declines.”
The most expensive components are $22.80 for 8Gbyte of NAND flash, $20 for the touchscreen, $20 for the display and $13.50 for the application processor.
