That $US188 figure is for the 16 GB model — the 32 costs Apple $US207 and the 64 is $US245. Tacked on to each price tag is an $US8 “manufacturing cost”, which accounts for the expense of renting out some humans from Foxconn for the day.
It’s pretty remarkable that a phone with a significantly faster processor and substantially beefier camera costs only a hair more than the old model — but that’s just a testament to Apple’s engineering efficiency, explains iSuppli: the 4S crams more radio tech into the same footprint, saving space and the cost of requiring multiple components. One place Apple isn’t saving money is that fancy screen of theirs — the most expensive component at $US37 total. Keep that in mind when you get the repair bill after cracking yours. [iSuppli via 9to5Mac]
panderiz
Friday, October 21, 2011 at 8:58 AMWhat a joke, the products cost somewhere around $200-$300… and they sell them for $800. You’d think Harvey Norman was selling them by the rediculous mark ups.
Peter
Friday, October 21, 2011 at 1:21 PMRetailers make shit all off of Apple products. That’s why their cases and accessories are so expensive – to offset the lack of profit. Apple stores are rape.
Jono
Friday, October 21, 2011 at 9:30 AMDivide RRP by 5 and this roughly gives you the cost the manufacturer for most products.
Lillee
Friday, October 21, 2011 at 9:39 AMThis does not take into account the millions or billions spent on RnD, software design and architecture, project management etc which can be divided by the amount of units sold.
Adam
Friday, October 21, 2011 at 10:03 AMI guess that’s why the iphone is so expensive, they need to pay for all the legal expenses.
Peter
Friday, October 21, 2011 at 1:24 PMAnd that’s why they’re making literal boatloads of profit, right? Not because they’re just doing a 400% markup?
Steve
Friday, October 21, 2011 at 1:37 PMAlready taken into account, hence it is a relative figure compared to the original cost of the iPhone 4 unit.
MotorMouth
Friday, October 21, 2011 at 11:41 AMI read an article in the Herald last year that said it only $4.56 to make an iPhone, so that $8 they are adding on might also include shipping costs or something.
Peter
Friday, October 21, 2011 at 1:25 PMMaybe in bare materials, but that’s no help if you aren’t a state alchemist.
Steve
Friday, October 21, 2011 at 1:38 PMYou’re an idiot if you believe that. I’m sure it costs more than $4.56 just in electricity to keep the machinery running for each unit. + manufacturing + R&D + raw material + processing + marketing + packaging + distribution.
Bloomy
Friday, October 21, 2011 at 11:58 AMYou are talking about hardware cost alone. Then there is a miriad of other costs like….packaging, advertising and marketing, shipping, engineering and design, software, testing, various regulatory certifications around the world, patents, legal, and of course the office cleaner!
All of those things and more contribute to the overall cost of the phone. Without knowing the details I reckon they are probably only making a 5% gross profit on each phone if that. Its a volume game, they dont expect to make a huge margin on this kind of device. They just need to sell millions of them…..and they do!