iPhone Buzz » Bill of Material (BoM) http://www.iphonebuzz.com tracking the iPhone revolution Thu, 09 Feb 2012 14:36:51 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 iPhone 3G may actually cost $173 to build http://www.iphonebuzz.com/iphone-3g-may-actually-cost-173-to-build-242799.php http://www.iphonebuzz.com/iphone-3g-may-actually-cost-173-to-build-242799.php#comments Tue, 24 Jun 2008 12:47:07 +0000 Chris Scott Barr http://www.iphonebuzz.com/?p=2799 It’s always interesting to see how different analysts come up with numbers. Take for instance the raw cost of materials for the new iPhone 3G. Portelligent released their estimates not long ago which suggested that Apple’s cost was only roughly $100. Well iSuppli has taken a look and come up with a drastically different figure.

iPhone 3G

According to the recent findings from iSuppli, they believe Apple will be paying roughly $173 for materials and manufacturing of the 8GB iPhone 3G. While they are estimating $73 higher than Portelligent, that’s still considerably less than the original iPhone, which was around $226.

You can bet that Apple is hoping you spring for the 16GB model (I know I am) as it is estimated that the additional memory will only cost them $23 more than the 8GB model. Of course, we’ll be paying an extra $100, so that’s a nice $77 in Apple’s pocket.

[via AppleInsider]

]]> http://www.iphonebuzz.com/iphone-3g-may-actually-cost-173-to-build-242799.php/feed 4 Teardown suggests iPhone 3G costs only $100 to manufacture http://www.iphonebuzz.com/teardown-suggests-iphone-3g-costs-only-100-to-manufacture-172763.php http://www.iphonebuzz.com/teardown-suggests-iphone-3g-costs-only-100-to-manufacture-172763.php#comments Tue, 17 Jun 2008 10:42:45 +0000 Chris Scott Barr http://www.iphonebuzz.com/?p=2763 Some people might be wondering why the new iPhone 3G is going to be so cheap in comparison to the first-gen device. While it’s easy to point out that Apple is likely getting more money from AT&T, rather than relying on actual sales of the device, that’s not the only reason. Analysts suspect that the newer iPhone really only costs around $100 to manufacture.

Portelligent estimates that with this lower manufacturing cost that Apple stands to make around $90 per phone on hardware alone. While that is significantly lower than the estimated $229 profit earned on the original iPhone, the extra money from AT&T that they are likely making in addition to the number of new users that will be attracted by the lower price will no doubt make up for the difference.

According to David Carey, president of Portelligent “Gen2 iPhone pricing is aggressive enough that it made me think Apple’s really taking the gloves off on this one. They are probably not as worried about iPhone hardware profits as they are about getting a piece of the action on service revenues and getting more Macs in homes and offices all around the globe.”

I have to agree with Carey on those points. With such a low price point, it’s going to be hard for other high-end phone manufactures to compete. Not to mention the number of new users that will be introduced to Apple’s products and therefore be tempted to “switch” to a Mac.

[via Macnn]

]]> http://www.iphonebuzz.com/teardown-suggests-iphone-3g-costs-only-100-to-manufacture-172763.php/feed 3 iSuppli reports their own BoM – 8GB iPhone costs Apple $250 to produce http://www.iphonebuzz.com/isuppli-reports-their-own-bom-8gb-iphone-costs-apple-250-to-produce-031073.php http://www.iphonebuzz.com/isuppli-reports-their-own-bom-8gb-iphone-costs-apple-250-to-produce-031073.php#comments Wed, 04 Jul 2007 00:19:49 +0000 Chris Scott Barr http://www.myitablet.com/isupply-reports-their-own-bom-8gb-iphone-costs-apple-250-to-produce-031073.php If you remember, we covered a story yesterday about a bill of materials done by Portelligent. They estimated that an 8GB iPhone would cost roughly $220 for Apple to make. Another independent firm has also done their own breakdown.

iPhone Dissembly

iSuppli tore apart their own 8GB iPhone (everyone seems so eager to tear apart their iPhones) and came up with a figure very close to the one previously reported. According to their findings, the $600 8GB iPhone probably cost Apple closer to $250 to make.

Seeing that the two companies came up with very similar answers means that they’re both likely not far off. Not many products on the market these days have such high margins. Granted, you still have to factor in costs for software, support and marketing. But remember, Apple is making a chunk of money from AT&T every time someone buys one, which drives the margin even higher. Well done Apple.

]]> http://www.iphonebuzz.com/isuppli-reports-their-own-bom-8gb-iphone-costs-apple-250-to-produce-031073.php/feed 1 Apple iPhone could generate up to 50 percent margin for Apple and AT&T http://www.iphonebuzz.com/apple-iphone-generate-up-to-50-percent-margin-for-apple-and-att-19242.php http://www.iphonebuzz.com/apple-iphone-generate-up-to-50-percent-margin-for-apple-and-att-19242.php#comments Fri, 19 Jan 2007 06:45:18 +0000 Vincent Nguyen http://www.myiphone.com/apple-iphone-could-generate-up-to-50-percent-margin-for-apple-and-att-19242.php Hot damn, what a hefty profit margin Apple and partner AT&T will enjoy.  Based on iSuppli’s preliminary functional Bill of Material (BoM) estimate, the Apple iPhone will cost $229.85 for hardware BoM and manufacturing cost and a $245.83 total expense for the 4GB model.  The 8GB Apple iPhone will cost $264.85 hardware cost and a $280.83 total expense.   Apple and AT&T will split the profit of 50.7% for the 4GB and 53.1% for the 8GB at the $599 retail price.


Apple iPhone to Generate 50 Percent Margin, According to iSuppli’s Preliminary Analysis [iSuppli]

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