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iPhone
iPhone 3GS Manufacturing Cost at $179 Per Unit
Wednesday, June 24th, 2009 at 5:20 PM - by Bryan Chaffin
Apple's 16GB iPhone 3GS costs the company US$178.96 per unit, according to a new teardown analysis conducted by iSuppli, Inc. This compares to a cost of $174.33 for the previous generation's entry-level 8GB iPhone 3G when that device was introduced in June of 2008. Apple retails the device for $599, with carrier subsidies bringing the cost down to qualifying customers down to $199.
The chart below offers a breakdown of costs for the major components in the iPhone 3GS, though iSuppli points out that these costs don't include the cost of software development, shipping and distribution, packaging, royalty fees and miscellaneous accessories included with each phone.
Wall Street analysts pay close attention to the cost of the iPhone due to its impact on Apple's gross margins and profits. This is especially so for a company like Apple, which guards this kind of information as closely as is possible.
iSuppli's teardown analysis is based on literally tearing a unit down, examining the components therein, and then using in-quantity costs analysis, along with associated labor costs estimates to provide a total estimated cost for each device.
Chart provided by iSuppli, Inc.
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