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iPhone
BlackBerry Storm Costs More to Make than iPhone 3G
Friday, January 30th, 2009 at 5:18 PM - by Bryan Chaffin
Research in Motion's BlackBerry Storm costs more than US$28 per unit more in component and manufacturing costs than Apple's iPhone 3G, according to a tear-down report from iSuppli. The firm said that the Storm 9350 had a combined materials and manufacturing cost of $202.89, compared to just $174.33 for the iPhone 3G.
That higher cost is due primarily to the fact that the device simply has more components than the iPhone 3G, with some 1,177 components, 151 of which are mechanical in nature. In comparison, the iPhone 3G has but 1,116, with fewer mechanical components.
iSuppli's report pinned the higher number of components to both the Storm's clickable screen and the fact that it supports more networks than the iPhone. The clickable screen means that the entire screen acts as a button, a feature that RIM has used to make up for the lack of the multitouch capabilities found in Apple's iPhone.
In the competitive market of smartphones, a 16.4% differential in component and manufacturing costs offers Apple a significant advantage over RIM. Analysts watch the gross margins of both companies closely, and small movements in those margins either way can have a significant effect on the companies' profits.
Both phones sell for the same amount in the U.S. -- $199 for an 8 GB iPhone 3G and $199 for the BlackBerry Storm 9350 after a $50 rebate -- with cell phone carriers paying both companies a subsidy that covers their other costs, including software, R&D, royalties on patents used in the device, etc.
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BlackBerry Storm | iPhone 3G |
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