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

Ableton Live 9.7.1 - Record music using...
Ableton Live lets you create and record music on your Mac. Use digital instruments, pre-recorded sounds, and sampled loops to arrange, produce, and perform your music like never before. Ableton Live... Read more
FileZilla 3.23.0.2 - Fast and reliable F...
FileZilla (ported from Windows) is a fast and reliable FTP client and server with lots of useful features and an intuitive interface. Version 3.23.0.2: Bug Fixes and Minor Changes Speed up icon... Read more
Vivaldi 1.5.658.56 - An advanced browser...
Vivaldi is a browser for our friends. In 1994, two programmers started working on a web browser. Our idea was to make a really fast browser, capable of running on limited hardware, keeping in mind... Read more
Safari Technology Preview 10.1 - The new...
Safari Technology Preview contains the most recent additions and improvements to WebKit and the latest advances in Safari web technologies. And once installed, you will receive notifications of... Read more
TunnelBear 3.0.8 - Subscription-based pr...
TunnelBear is a subscription-based virtual private network (VPN) service and companion app, enabling you to browse the internet privately and securely. Features Browse privately - Secure your data... Read more
NeoFinder 7.0 - Catalog your external me...
NeoFinder (formerly CDFinder) rapidly organizes your data, either on external or internal disks, or any other volumes. It catalogs all your data, so you stay in control of your data archive or disk... Read more
Coda 2.6 - One-window Web development su...
Coda is a powerful Web editor that puts everything in one place. An editor. Terminal. CSS. Files. With Coda 2, we went beyond expectations. With loads of new, much-requested features, a few surprises... Read more
File Juicer 4.51 - Extract images, video...
File Juicer is a drag-and-drop can opener and data archaeologist. Its specialty is to find and extract images, video, audio, or text from files which are hard to open in other ways. In computer... Read more
PDFpenPro 8.3 - $124.95
PDFpenPro allows users to edit PDF's easily. Add text, images and signatures. Fill out PDF forms. Merge or split PDF documents. Reorder and delete pages. Create fillable forms and tables of content... Read more
PDFpen 8.3 - $74.95
PDFpen allows users to easily edit PDF's. Add text, images and signatures. Fill out PDF forms. Merge or split PDF documents. Reorder and delete pages. Even correct text and edit graphics! Features... Read more

Latest Forum Discussions

See All

Clash of Clans is getting its own animat...
Riding on its unending wave of fame and success, Clash of Clans is getting an animated web series based on its Clash-A-Rama animated shorts.As opposed to the current shorts' 60 second run time, the new and improved Clash-A-Rama will be comprised of... | Read more »
Leaks hint at Pokémon GO and Starbucks C...
Leaked images from a hub for Starbucks employees suggests that a big Pokémon GO event with the coffee giant could begin this very week. The images appeared on Reddit and hint at some exciting new things to come for Niantic's smash hit game. | Read more »
Silent Depth Submarine Simulation (Game...
Silent Depth Submarine Simulation 1.0 Device: iOS Universal Category: Games Price: $7.99, Version: 1.0 (iTunes) Description: | Read more »
Enneas Saga lets you lead your own demon...
Defend the land of Enneas Continent from the forces of evil in the new fantasy MMORPG from Lyto Mobi: Enneas Saga. Can’t wait? No problem. It’s available to download now on Android devices. | Read more »
Great zombie games in the spirit of Dead...
Dead Rising 4 arrives tomorrow, giving enthusiasts a fresh chance to take selfies with zombies and get up to other ridiculous end-of-the-world shenanigans. To really get into the spirit of things, we've gone and gathered the best zombie games that... | Read more »
Amateur Surgeon 4 Guide: Advanced tips a...
Amateur Surgeon 4 is still tackling the competition at the top of the App Store charts, so if you haven't tried it out yet, you should probably do that right away. If you've been at it for a while, though, perhaps you're ready to start expanding... | Read more »
Amateur Surgeon 4 Guide: Become the worl...
It's time to wield your trusty pizza cutter again, as Amateur Surgeon has returned with a whole fresh set of challenges (and some old, familiar ones, too). Starting anew isn't easy, especially when all you have at your disposal is a lighter, the... | Read more »
Le Parker: Sous Chef Extraordinaire (Ga...
Le Parker: Sous Chef Extraordinaire 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »
Telltale Games really is working on a Gu...
Telltale Games' next episodic adventure is indeed Guardians of the Galaxy. A document tied to the voice actors strike suggested that the project was in the work, but now we have direct confirmation following an announcement at the Game Awards that... | Read more »
Amateur Surgeon returns to iOS and Andro...
Amateur Surgeon and its two sequels disappeared from the App Store some time and it was sad days for all. But now, just in time for the holidays, the Adult Swim favorite makes its joyous return in the shape of Amateur Surgeon 4, a remake with... | Read more »

Price Scanner via MacPrices.net

Twenty-Five Years Of Apple Laptops – A person...
Among many other things, the often tumultuous 16th year of the new century marked the 25th anniversary of Apple laptop computers, not counting the optimistically named 16-pound Mac Portable of 1989.... Read more
Landlordy iOS App Adds Support For Appliances...
Riga, Latvia based E-protect SIA is releasing major update (version 1.8) to its Landlordy app for managing rental business financials on the go. Landlordy is iPhone and iPad app designed for self-... Read more
Holiday sale, Apple iMacs for up to $200 off...
B&H Photo has 21″ and 27″ Apple iMacs on sale for up to $200 off MSRP including free shipping plus NY sales tax only: - 27″ 3.3GHz iMac 5K: $2099 $200 off MSRP - 27″ 3.2GHz/1TB Fusion iMac 5K: $... Read more
Holiday sale: Mac minis for $50 to $100 off M...
B&H Photo has Mac minis on sale for up to $100 off MSRP free shipping plus NY sales tax only: - 1.4GHz Mac mini: $449 $50 off MSRP - 2.6GHz Mac mini: $629 $70 off MSRP - 2.8GHz Mac mini: $899 $... Read more
Mac Pros on sale for up to $300 off MSRP, ref...
B&H Photo has Mac Pros on sale for up to $300 off MSRP. Shipping is free, and B&H charges sales tax in NY only: - 3.7GHz 4-core Mac Pro: $2799, $200 off MSRP - 3.5GHz 6-core Mac Pro: $3699, $... Read more
12-inch WiFi Apple iPad Pros on sale for up t...
B&H Photo has 12″ WiFi Apple iPad Pros on sale for up to $50 off MSRP, each including free shipping. B&H charges sales tax in NY only: - 12″ Space Gray 32GB WiFi iPad Pro: $749 $50 off MSRP... Read more
9-inch Apple WiFi iPad Pros on sale for $20-$...
B&H Photo has 9.7″ Apple WiFi iPad Pros on sale for $20-$50 off MSRP, each including free shipping. B&H charges sales tax in NY only: - 9″ Space Gray 256GB WiFi iPad Pro: $779.95 $20 off MSRP... Read more
Apple refurbished 2015 15-inch MacBook Pros a...
Apple has Certified Refurbished 2015 15″ Retina MacBook Pros available starting at $1699. An Apple one-year warranty is included with each model, and shipping is free: - 15″ 2.2GHz Retina MacBook Pro... Read more
Back in stock! 13-inch 2.7GHz Retina MacBook...
Apple has Apple Certified Refurbished 2015 13″ 2.7GHz/128GB Retina MacBook Pros (MF839LL/A) available again for $1099 including free shipping. That’s $200 off MSRP, and it’s the lowest price... Read more
Slate Tablet Market Share to Fall Below 75% i...
After two years of decline, the tablet market is showing signs of new life as productivity trumps entertainment, and tablets become cost-effective computing devices for both entertainment and... Read more

Jobs Board

*Apple* Retail - Multiple Positions- Philade...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions- San Ant...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Products Tester Needed - Apple (Unit...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
SW Engineer *Apple* TV Frameworks - Apple I...
The Apple TV team is looking for a software...create features that reflect the look and feel of Apple TV. Description: Were looking for someone who is Read more
Hardware Design Validation Engineer - *Apple...
The Apple Watch team is looking for a Hardware Design Validation Engineer. This person will be part of the Apple Watch hardware team with responsibilities for Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.