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

Latest Forum Discussions

See All

Soft Drummer (Music)
Soft Drummer 1.0 Device: iOS Universal Category: Music Price: $14.99, Version: 1.0 (iTunes) Description: Soft Drummer is the closest thing to a pro session subtle drummer in your pocket. Easy to use and fast, it's much more than a... | Read more »
Is GO Gear the Pokemon GO map app you...
Now that we've settled into something of a Pokemon GO status quo, the number one desire of most players can best be summed out by modifying a quote from Rod Tidwell of Jerry Maguire: "Show me the Pokemon!" [Read more] | Read more »
Rodeo Stampede update: Mountains, new an...
The Savannah and Jungle were just the beginning in Rodeo Stampede. Get ready to head for the Mountains. I think I heard that in a beer ad once. [Read more] | Read more »
COSMOS RINGS (Games)
COSMOS RINGS 1.0.0 Device: iOS iPhone Category: Games Price: $5.99, Version: 1.0.0 (iTunes) Description: This game cannot be played without the Apple Watch.Released anniversary sale until August 31,2016 PST! A tragic tale of time's... | Read more »
How to get started selling on Mercari
As far as ecommerce has come over the last decade or so, there's still a tremendous opportunity to make it easier for people to buy and sell goods. That's especially true when it comes to shopping apps, which should only continue to increase in... | Read more »
Human Anatomy Atlas 2017 Edition - Compl...
Human Anatomy Atlas 2017 Edition - Complete 3D Human Body 1.0.24 Device: iOS iPhone Category: Medical Price: $24.99, Version: 1.0.24 (iTunes) Description: | Read more »
Heroes of Normandie (Games)
Heroes of Normandie 1.5 Device: iOS Universal Category: Games Price: $14.99, Version: 1.5 (iTunes) Description: The game does not support iPhone 4s and below | Read more »
Why you should never power up Pokemon in...
There's no question that candy is dandy in Pokemon GO. You need big quantities of it to evolve your Pokemon, and when combined with stardust, it can be used to power up your favorite pocket monsters as well, making them more formidable for the gym... | Read more »
Webzen launches 3D MMORPG MU Origin on i...
Mu Origin is featured time and time again at the very top of App Stores in China, and within the top five worldwide top-grossing charts on Google Play.Its popularity in Korea and China, featuring more than 120 registered players in China and 6... | Read more »
Severed (Games)
Severed 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: LAUNCH DISCOUNT ON NOW!! ENDS AUGUST 4! ==== Take control of a one-armed warrior named Sasha, wielding a living sword on her journey... | Read more »

Price Scanner via MacPrices.net

Second-Quarter Tablet Shipments Fell 4.8% –...
The latest report from the global market research firm TrendForce finds that worldwide tablet shipments for this second quarter totaled 33.54 million units, representing a quarterly drop of 4.8% and... Read more
Global Smartphone Sales Volumes Mark Second S...
According to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 343.3 million smartphones worldwide in the second... Read more
Apple TVs on sale for $20-$40 off MSRP
Best Buy has 32GB and 64GB Apple TVs on sale for $20-$40 off MSRP on their online store. Choose free shipping or free local store pickup (if available). Sale prices for online orders only, in-store... Read more
Mac minis on sale for $50-$100 off MSRP
B&H Photo has Mac minis on sale for $50 off MSRP including free shipping plus NY sales tax only: - 1.4GHz Mac mini: $449 $50 off MSRP - 2.6GHz Mac mini: $649 $50 off MSRP - 2.8GHz Mac mini: $949... Read more
Clearance 2015 13-inch MacBook Airs available...
B&H Photo has clearance 2015 13″ MacBook Airs available for $300 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/4GB/128GB MacBook Air (MJVE2LL/A): $799... Read more
Apple certified refurbished iPad mini 4s avai...
Apple has certified refurbished iPad mini 4s now available for up to $120 off the cost of new models. An Apple one-year warranty is included with each iPad, and shipping is free. The following models... Read more
Notebook Makers In No Rush To Adopt USB-C – R...
Digitimes’ Cage Chao and Joseph Tsai note that while the USB Type-C interface is enjoying growing popularity among smartphones and tablet makers, notebook and all-in-one (AIO) PC vendors (other than... Read more
iMacs on sale for up to $250 off MSRP
B&H Photo has 21″ and 27″ Apple iMacs on sale for up to $250 off MSRP including free shipping plus NY sales tax only: - 27″ 3.3GHz iMac 5K: $2049 $250 off MSRP - 27″ 3.2GHz/1TB Fusion iMac 5K: $... Read more
12-inch 1.1GHz Retina MacBooks on sale for up...
Amazon has 2016 12″ 1.1GHz/256GB Retina MacBooks on sale for up to $100 off MSRP including free shipping: - 12″ 1.1GHz Space Gray Retina MacBook: $1199 $100 off MSRP - 12″ 1.1GHz Silver Retina... Read more
Bare Bones Software Releases Free TextWrangle...
Bare Bones Software has announced the release and immediate availability of TextWrangler 5.5, a significant update to its powerful, free, general purpose text editor for Mac OS X. TextWrangler is a... Read more

Jobs Board

*Apple* Solutions Consultant - APPLE (United...
Job Summary As an Apple Solutions Consultant, you'll be the link between our future customers and our products. You'll showcase your entrepreneurial spirit as you Read more
Lead *Apple* Solutions Consultant - APPLE (...
Job Summary The Lead ASC is an Apple employee who serves as the Apple business manager and influencer across a number of Reseller locations. The Lead ASC's role Read more
*Apple* Retail - Multiple Positions, Charles...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions, Willow...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Evangelist - JAMF Software (United S...
The Apple Evangelist is responsible for building and cultivating strategic relationships with Apple 's small and mid-market business development field teams. This Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.