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Information Technology News iPhone parts cost $200, says analyst
Information Technology News iPhone parts cost $200, says analyst | iPhone parts cost $200, says analyst |
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| by Stephen Withers | |
| Tuesday, 03 July 2007 | |
  
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The touchscreen is believed to be the most expensive component - an "educated guess" puts the cost at $US60 - and at least two of the chips used are based on ARM's CPU technology (Apple was one of the original owners of UK-based ARM). The $US200 does not include assembly costs, packaging and so on, and therefore this doesn't mean Apple is making a clear profit of $300 or $400 on each iPhone. But a healthy margin - and materials costs of around 50 percent isn't unusual for non-commodity electronic products - allows Apple to recover the investment needed to create the iPhone in the first place. And remember that retailers expect a margin too - it may be Apple and AT&T selling the iPhone to consumers, but their retail operations still need to pay their way. |
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