The cost of raw parts in an iPhone 4 is $187.51

2nd July, 2010 by adina
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The iPhone 4 seems to be Apple’s most expensive device ever, according to iSuppli. For example, a 16GB device has a cost of $187.51 when considering the raw parts. It is true that the cost of the original model in 2007 was $223, but it is more than the iPhone 3G which costs $173, or the iPhone 3GS priced at $178.96. The largest part of the increase is due to the 960×640 IPS screen built by LG Display, which is valued at $28.50.

Another most expensive part is the A4 processor, custom-designed by Apple and manufactured by Samsung, which costs about $10.75. The addition of a gyroscope made by STMicro has also increased the price with another $2.60. The final cost is also influenced by the front camera, but the amount is not known.

Other parts present in the iPhone 4 are the Wi-Fi chipsets, Broadcom Bluetooth, TriQuint and Skyworks cellular hardware. The glass and touchscreen are supposed to be made by Wintek or TPK-Balda, while Infineon has been replaced by Broadcom.

The estimated cost does not include research, marketing, shipping or other elements beyond the constitutive parts and assembly. All these suggest that the actual cost needed to bring the phone to a store and still generate profit would be considerably higher. The company normally has a price of $599 for the 16GB model, while the price of the 32GB version is $699 without any contract on AT&T’s network.

The growth of cost for the parts could be an explanation for the lack of an upgrade in capacity for the iPhone. Unlike in the past it has doubled the storage space.


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Readers Comments

  1. R2D2 says:

    R2D2 here,

    Apple Inc. said Friday that it was “stunned” to find that its iPhones have for years been using a “totally wrong” formula to determine how many bars of signal strength they are getting. Since Job’s first fix “you’re holding it wrong” did not sell well he now has the solution: Use software to pretend that the hardware is working. Yeah, that’s the ticket. Oh, and that new software will also make you weigh ten pounds less and will add 10K to your bank account. Ahhhhhhahahahaha! Oops, help me Obi-Wan! I laughed so hard I fell over and can’t get up.

    It’s July and hot on Earth. Better drink up that Kool-Aid.

    No such problems with my Droids. The hardware is the best in the galaxy. You earthlings can expect another delivery very soon. The Millennium Falcon has just jumped to hyperspace to get my Droids there without delay.

    The Force is with us! R2D2