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."

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

macOS Server 5.3 - Quickly and easily tu...
macOS Server, designed for macOS and iOS devices, makes it easy to share files, schedule meetings, synchronize contacts, develop software, host your own website, publish wikis, configure Mac, iPhone... Read more
Merlin Project 4.2.0 - Project managemen...
Merlin Project is the leading professional project management software for OS X. If you plan complex projects on your Mac, you won’t get far with a simple list of tasks. Good planning raises... Read more
Skim 1.4.28 - PDF reader and note-taker...
Skim is a PDF reader and note-taker for OS X. It is designed to help you read and annotate scientific papers in PDF, but is also great for viewing any PDF file. Skim includes many features and has a... Read more
RapidWeaver 7.3.2 - Create template-base...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more
Together 3.8.1 - Store and organize all...
Together helps you organize your Mac, giving you the ability to store, edit and preview your files in a single clean, uncluttered interface. Features Smart storage. With simple drag-and-drop... Read more
Apple MainStage 3.3 - Live performance t...
Apple MainStage makes it easy to bring to the stage all the same instruments and effects that you love in your recording. Everything from the Sound Library and Smart Controls you're familiar with... Read more
Apple iOS 10.3 - The latest version of A...
iOS 10 is the biggest release of iOS ever. A massive update to Messages brings the power of the App Store to your conversations and makes messaging more personal than ever. Find your route with... Read more
Postbox 5.0.12 - Powerful and flexible e...
Postbox is a new email application that helps you organize your work life and get stuff done. It has all the elegance and simplicity of Apple Mail, but with more power and flexibility to manage even... Read more
Apple Keynote 7.1 - Apple's present...
Easily create gorgeous presentations with the all-new Keynote, featuring powerful yet easy-to-use tools and dazzling effects that will make you a very hard act to follow. The Theme Chooser lets you... Read more
Apple Pages 6.1 - Apple's word proc...
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

Hearthstone celebrates the upcoming Jour...
Hearthstone gets a new expansion, Journey to Un'Goro, in a little over a week, and they'll be welcoming the Year of the Mammoth, the next season, at the same time. There's a lot to be excited about, so Blizzard is celebrating in kind. Players will... | Read more »
4 smart and stylish puzzle games like Ty...
TypeShift launched a little over a week ago, offering some puzzling new challenges for word nerds equipped with an iOS device. Created by Zach Gage, the mind behind Spelltower, TypeShift boasts, like its predecessor, a sleak design and some very... | Read more »
The best deals on the App Store this wee...
Deals, deals, deals. We're all about a good bargain here on 148Apps, and luckily this was another fine week in App Store discounts. There's a big board game sale happening right now, and a few fine indies are still discounted through the weekend.... | Read more »
The best new games we played this week
It's been quite the week, but now that all of that business is out of the way, it's time to hunker down with some of the excellent games that were released over the past few days. There's a fair few to help you relax in your down time or if you're... | Read more »
Orphan Black: The Game (Games)
Orphan Black: The Game 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Dive into a dark and twisted puzzle-adventure that retells the pivotal events of Orphan Black. | Read more »
The Elder Scrolls: Legends is now availa...
| Read more »
Ticket to Earth beginner's guide: H...
Robot Circus launched Ticket to Earth as part of the App Store's indie games event last week. If you're not quite digging the space operatics Mass Effect: Andromeda is serving up, you'll be pleased to know that there's a surprising alternative on... | Read more »
Leap to victory in Nexx Studios new plat...
You’re always a hop, skip, and a jump away from a fiery death in Temple Jump, a new platformer-cum-endless runner from Nexx Studio. It’s out now on both iOS and Android if you’re an adventurer seeking treasure in a crumbling, pixel-laden temple. | Read more »
Failbetter Games details changes coming...
Sunless Sea, Failbetter Games' dark and gloomy sea explorer, sets sail for the iPad tomorrow. Ahead of the game's launch, Failbetter took to Twitter to discuss what will be different in the mobile version of the game. Many of the changes make... | Read more »
Splish, splash! The Pokémon GO Water Fes...
Niantic is back with a new festival for dedicated Pokémon GO collectors. The Water Festival officially kicks off today at 1 P.M. PDT and runs through March 29. Magikarp, Squirtle, Totodile, and their assorted evolved forms will be appearing at... | Read more »

Price Scanner via MacPrices.net

13-inch MacBook Airs, Apple refurbished, in s...
Apple has Certified Refurbished 2016 13″ MacBook Airs available starting at $849. An Apple one-year warranty is included with each MacBook, and shipping is free: - 13″ 1.6GHz/8GB/128GB MacBook Air: $... Read more
12-inch Retina MacBooks on sale for $1199, sa...
B&H has 12″ 1.1GHz Retina MacBooks on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 12″ 1.1GHz Space Gray Retina MacBook: $1199 $100 off MSRP - 12″ 1.1GHz... Read more
Save up to $260 with Apple refurbished 12-inc...
Apple has Certified Refurbished 2016 12″ Retina MacBooks available for $200-$260 off MSRP. Apple will include a standard one-year warranty with each MacBook, and shipping is free. The following... Read more
13-inch 2.7GHz Retina MacBook Pro on sale for...
B&H Photo has the 2015 13″ 2.7GHz/128GB Retina Apple MacBook Pro on sale for $170 off MSRP. Shipping is free, and B&H charges NY tax only: - 13″ 2.7GHz/128GB Retina MacBook Pro (MF839LL/A): $... Read more
15-inch 2.2GHz Retina MacBook Pro on sale for...
B&H Photo has the 2015 15″ 2.2GHz Retina MacBook Pro (MJLQ2LL/A) on sale for $1799.99 including free shipping plus NY sales tax only. Their price is $200 off MSRP. Read more
Save up to $160 with Apple refurbished 9-inch...
Apple has Certified Refurbished 9″ and 12″ Apple iPad Pros available for up to $160 off the cost of new iPads. An Apple one-year warranty is included with each model, and shipping is free: - 32GB 9″... Read more
Apple Chip Foundry TSMC To Begin A11 System-o...
Digitimes’ Steve Shen is reporting today that according to the Chinese-language Economic Daily News (EDN), chipmaker and major Apple supplier foundery Taiwan Semiconductor Manufacturing Company (TSMC... Read more
MacX MediaTrans 3.5 iOS Data Transfer Spring...
MacXDVD Software has announced general availability of the latest MacX MedTrans 3.5, featuring a new user interface (UI). MacX MediaTrans is ann iPhone manager that enables free data transfer between... Read more
Regular Price $19.95 DupeZap 4 Finder For OS...
Hyperbolic Software has announced the release of DupeZap 4.0.2, their modern duplicate finder developed exclusively for macOS. DupeZap 4 is an utility for Mac owners seeking to reclaim disk space... Read more
B-Eng Releases SSD Health Check for MVNe for...
Fehraltorf, Switzerland based B-Eng has announced the release and immediate availability of SSD Health Check for MVNe for MacBook Pro, their app that delivers important data and insights for MVNe... Read more

Jobs Board

Fulltime aan de slag als shopmanager in een h...
Ben jij helemaal gek van Apple -producten en vind je het helemaal super om fulltime shopmanager te zijn in een jonge en hippe elektronicazaak? Wil jij werken in Read more
*Apple* Mobile Master - Best Buy (United Sta...
**492889BR** **Job Title:** Apple Mobile Master **Location Number:** 000886-Norwalk-Store **Job Description:** **What does a Best Buy Apple Mobile Master do?** Read more
*Apple* Mobile Master - Best Buy (United Sta...
**492472BR** **Job Title:** Apple Mobile Master **Location Number:** 000470-Seattle-Store **Job Description:** **What does a Best Buy Apple Mobile Master do?** Read more
*Apple* Mobile Master - Best Buy (United Sta...
**492562BR** **Job Title:** Apple Mobile Master **Location Number:** 000853-Jackson-Store **Job Description:** **What does a Best Buy Apple Mobile Master do?** Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.