The iPhone 5 costs about $200 to build
TweetFollow Us on Twitter

The iPhone 5 costs about $200 to build

The new iPhone 5 carries a bill of materials (BOM) of US$199 for the low-end model with 16GB of NAND flash memory, according to a preliminary virtual teardown conducted by the IHS iSuppli Teardown Analysis Service (www.isuppli.com).

When the $8 manufacturing cost is added in, the cost to produce the iPhone 5 rises to $207. For the 32GB version of the iPhone 5, the BOM cost increases to $209, while the 64GB version is estimated at $230.

Note that these teardown assessments are preliminary in nature, account only for hardware and manufacturing costs and don't include other expenses such as software, licensing, royalties or other expenditures.   

"With the base model carrying a $199 BOM, the iPhone 5’s components are expected to be slightly more expensive compared to the iPhone 4S model," says Andrew Rassweiler, senior principal analyst, teardown services, for IHS. "The low-end iPhone 4S with the same memory density as the base-model iPhone 5 carried a BOM of $188.00, according to a preliminary estimate issued by IHS in October 2011. While the price of some components, such as NAND flash, has fallen during the past year, the iPhone 5’s overall BOM has increased mainly because its display and wireless subsystems are more expensive compared to the iPhone 4S."

As in previous models, the costliest subsystem in the iPhone 5 is estimated to be the display with integrated, in-cell touch sensing. At $44, this subsystem is pricier than the combined total of  $37 for the iPhone 4S display with separate touchscreen based on pricing from October 2011. This is due to the iPhone 5’s larger display -- at 4.0 inches diagonally, compared to 3.5 inches for the iPhone 4S -- and the inclusion of the new in-cell touchscreen technology

"The iPhone 5 makes a big evolutionary step in technology that we have not seen elsewhere with the use of in-cell touch sensing," Rassweiler says. "Most other smartphones LCDs use a completely distinct capacitive touchscreen assembly that is physically separate and placed on top of the display. The iPhone 5 partially integrates the touch layers into the display glass, making the product thinner and reducing the number of parts required to build display that senses touch without the need for a separate capacitive touch layer."

In the past, smartphones with capacitive touch technology employed different suppliers for the display and touchscreen. However, Samsung made the first advance beyond conventional capacitive touch with what is known as on-cell touch. All of Samsung’s Super AMOLED screens employed in smartphones use on-cell technology, which is sold as a single integrated display/touchscreen unit from Samsung. When smartphone makers buy Super AMOLED displays from Samsung, they come with touch capability integrated. This simplifies smartphone product designs and also makes them thinner. 

Apple’s in-cell technology represents the next step beyond on-cell by integrating the touch sensing feature into the display, according to iHS iSuppli. No separate touchscreen assembly is involved; instead, a single unit comes directly from the iPhone 5’s three known display suppliers—LG Display Co. Ltd., Japan Display Inc . and Sharp Corp.

The addition of high-speed 4G LTE technology is estimated to have driven up the cost of the wireless section of the iPhone 5, at $34, compared to about $24 for the iPhone 4S.

"We believe that Apple is implementing LTE in a particularly novel way,”" Rassweiler says. "Apple ideally would like to sell one iPhone in all markets. However, there are so many different LTE frequencies that must be supported around the world that this has become a difficult thing to do. For most smartphone manufacturers, the solution is to build different variations of their smartphones for each carrier, so that they won’t spend extra money on superfluous components. However, this is not the Apple way."

Instead, the Apple way is to pack all of the features needed to support as many carriers as possible with a single product, he adds. Still, that will be tough to do in this situation. For now, IHS believes there are at least two different versions of the iPhone 5 -- each with multiband filters that will allow Apple to support as many global markets as possible with as few versions of the product as feasible.

"In some ways this is an expensive way to do business, but by maintaining the fewest numbers of variations possible, Apple is playing to its strength in product design," Rassweiler says.

The iPhone 5 is expected to  use a similar LTE wireless subsystem found in the iPad 3, but with at least one major enhancement. The iPad 3’s  wireless section is based on Qualcomm Inc.’s first-generation LTE baseband processor, the MDM9600, and its RTR8600 RF transceiver. However, in the iPhone 5, Apple is expected to employ Qualcomm’s second-generation MDM9615 baseband processor, which is made with a more advanced semiconductor manufacturing technology, reducing power consumption.

Another major upgrade of the iPhone 5 is the use of the A6 processor, compared to the A5 in the iPhone 4S. The A6 is estimated to be slightly more expensive, at $17.50, compared to $15 for the A5, based on pricing at the time of the iPhone 4S’s introduction.

According to preliminary information, the A6 has a dual-core processor as well as several graphics-processing units to boost performance. Samsung is expected to be the manufacturer of the A6. However, since this is an Apple-designed chip, Samsung is expected to  produce it on a foundry basis, rather than acting as a semiconductor supplier for Apple.

IHS speculates the A6 is manufactured using at least 32nm process geometry, and perhaps even the more advanced 28nm technology. This will be determined during the IHS iSuppli physical hardware teardown.

The 16GB of NAND flash in the iPhone 5 is estimated to cost $10.40, down dramatically from $19.20, based on pricing in October 2011.

"NAND flash continues to come down  in price as manufacturing processes for these memory chips become more advanced," Rassweiler says. "And because it is the world's largest buyer of NAND flash, Apple gets preferential pricing. Apple’s massive leverage in this market is reflected in our price estimate."

 
AAPL
$100.58
Apple Inc.
+0.01
MSFT
$45.22
Microsoft Corpora
+0.27
GOOG
$583.37
Google Inc.
-1.12

MacTech Search:
Community Search:

Software Updates via MacUpdate

OpenOffice 4.1.1 - Free and open-source...
OpenOffice.org is both an Open Source product and a project. The product is a multi-platform office productivity suite. It includes the key desktop applications, such as a word processor,... Read more
Pages 5.2.2 - Apple's word processo...
Apple Pages is a powerful word processor that gives you everything you need to create documents that look beautiful. And read beautifully. It lets you work seamlessly between Mac and iOS devices. And... Read more
Quicken 2015 2.0.1 - Complete personal f...
The new Quicken 2015 helps you manage all your personal finances in one place, so you can see where you're spending and where you can save. Quicken automatically categorizes your financial... Read more
CleanMyMac 2.2.7 - Delete files that was...
CleanMyMac makes space for the things you love. Sporting a range of ingenious new features, CleanMyMac 2 lets you safely and intelligently scan and clean your entire system, delete large, unused... Read more
MacFamilyTree 7.2.4 - Create and explore...
MacFamilyTree gives genealogy a facelift: it's modern, interactive, incredibly fast, and easy to use. We're convinced that generations of chroniclers would have loved to trade in their genealogy... Read more
Videobox 4.1.1 - Download Flash video th...
Videobox allows you to quickly and easily download Flash video from most all of the popular video sites on the internet. Videobox will convert the video into a native Quicktime format so it's ready... Read more
Web Snapper 3.3.5 - Capture entire Web p...
Web Snapper lets you capture Web pages exactly as they appear in your browser. You can send them to a file as images or vector-based, multi-page PDFs. It captures the whole Web page - eliminating... Read more
Picasa 3.9.138 - Organize, edit, and sha...
Picasa and Picasa Web Albums allows you to organize, edit, and upload your photos to the Web from your computer in quick, simple steps. Arrange your photos into folders and albums and erase their... Read more
Tidy Up 3.0.15.0 - Find duplicate files...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Parallels Desktop 10.0 - Run Windows app...
Parallels Desktop is simply the world's bestselling, top-rated, and most trusted solution for running Windows applications on your Mac. With Parallels Desktop for Mac, you can seamlessly run both... Read more

Latest Forum Discussions

See All

Doctor Who: Legacy Review
Doctor Who: Legacy Review By Jennifer Allen on August 22nd, 2014 Our Rating: :: RUN OF THE MILLUniversal App - Designed for iPhone and iPad Doctor Who: Legacy is an ok match-3 puzzle game, but it lacks some much needed personality... | Read more »
Pentumble (Games)
Pentumble 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: *** Special Launch Price! 33% Off! *** Pentumble combines the joy of a free-flowing platformer with beautiful graphics and levels... | Read more »
DotEmu Summer Sale Cuts Several Games’ P...
DotEmu Summer Sale Cuts Several Games’ Prices to $0.99 Posted by Ellis Spice on August 21st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
King Announces its Newest “Saga” – Diamo...
King Announces its Newest “Saga” – Diamond Digger Saga Posted by Jessica Fisher on August 21st, 2014 [ permalink ] Diamond Digger Saga, by King Digital Entertainment, promises to be another addictive, adorable game in the “Saga” | Read more »
Spacetime Studios’ Greg Mueller Tells Al...
| Read more »
TourStar Review
TourStar Review By Rob Thomas on August 21st, 2014 Our Rating: :: BORING TOURINGUniversal App - Designed for iPhone and iPad When The Ramones sang “Touring, touring/It’s never boring,” they clearly weren’t referring to TourStar.... | Read more »
Track Your Pregnancy with Glow Nurture
Track Your Pregnancy with Glow Nurture Posted by Jessica Fisher on August 21st, 2014 [ permalink ] iPhone App - Designed for the iPhone, compatible with the iPad | Read more »
Repel the advances of aliens and space...
King’s Empire developer Tap4Fun has a whole catalogue of games under its belt, including a space-based role-playing title called Galaxy Legend. Set in the 2841, Galaxy Legend follows humanity as it begins to expand to the furthest stars in the... | Read more »
Outcast Odyssey – An Interview with the...
At this year’s San Diego Comic-Con, fans got the chance to meet and mingle with several of the artists behind Magic Pixel Games and Namco Bandai’s upcoming card battler, Outcast Odyssey. Considering many of these artists have worked on comics in the... | Read more »
Hanx Writer Review
Hanx Writer Review By Jennifer Allen on August 21st, 2014 Our Rating: :: NOSTALGIC WRITINGiPad Only App - Designed for the iPad Miss writing on a typewriter? Hanx Writer replicates that experience pretty well on your iPad.   | Read more »

Price Scanner via MacPrices.net

Leftover 15-inch 2.0GHz Retina MacBook Pros a...
B&H Photo has leftover previous-generation 15″ 2.0GHz Retina MacBook Pros now available for $1599 including free shipping plus NY sales tax only. Their price is $400 off original MSRP. B&H... Read more
Pro.Calendar – New Productivity App for iPad...
Austin, Texas based mobile business and productivity app developer LightArrow, Inc. has announced Pro.Calendar, a powerful and intuitive calendar app with eight versatile calendar options including... Read more
SanDisk Ultra II SSD — Supercharge Your Syste...
SanDisk Corporation has announced the new SanDisk Ultra II SSD with enhanced SSD Dashboard. The new drive is designed to deliver a cost-effective and easy upgrade solution for PC owners looking to... Read more
Samsung and Barnes & Noble Introduce New...
Samsung Electronics America and NOOK Media, a subsidiary of Barnes & Noble, Inc. have announced the introduction of the new Samsung Galaxy Tab 4 NOOK, a 7-inch tablet combining Samsung’s leading... Read more
21-inch iMacs on sale for up to $150 off MSRP
B&H Photo has 21″ iMacs on sale for up to $150 off MSRP including free shipping plus NY sales tax only. B&H will also include a free copy of Parallels Desktop software: - 21″ 2.7GHz iMac: $... Read more
27-inch 3.2GHz iMac on sale for $1698, save $...
Abt has the 27″ 3.2GHz iMac on sale for $1698 including free shipping. Their price is $101 off MSRP. Read more
Mac Backup Guru 2.0 Drive Backup/Cloneing Uti...
Mac Backup Guru developer MacDaddy has released Mac Backup Guru 2.0, offering new and enhanced advanced features, such as bootable backups, synchronised volumes and folders, and a Snapshot mode that... Read more
Operate GE’s New Free-Standing KItchen Range...
Think you accidentally left the oven on? Switch it off while on the go. The new free-standing Profile™ Series gas and electric ranges are GE’s second cooking appliances, following their wall oven, to... Read more
Parallels Announces Parallels Desktop 10 for...
The no. 1-selling software for running Windows applications on a Mac becomes an even easier choice for millions of consumers and IT professionals worldwide with the launch of the most powerful... Read more
Apple now offering certified refurbished 2014...
 The Apple Store is now offering Apple Certified Refurbished 2014 MacBook Airs for up to $180 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** As more and more people discover Apple , they visit our stores seeking ways to incorporate our products into their lives. It's your job, as a Store Read more
Position Opening at *Apple* - Apple (United...
…Summary** As a Specialist, you help create the energy and excitement around Apple products, providing the right solutions and getting products into customers' hands. You Read more
Project Manager, *Apple* Financial Services...
**Job Summary** Apple Financial Services (AFS) offers consumers, businesses and educational institutions ways to finance Apple purchases. We work with national and Read more
*Apple* Solutions Consultant (ASC)- Retail S...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.