iSuppli: iPhone Costs $174.33 to Make
Apple’s new iPhone 3G device has a cost-of-materials of $174.33 in its 8GB denomination, according to a study conducted last week the iSuppli’s Teardown Analysis Service. The cost includes initial production costs as well as cost of manufacturing.
The cost is only $2 more than the figure predicted by the firm in late June; the original iPhone last year cost $227 to make.
“iSuppli believes Apple aimed for a more cost-effective design for the 3G iPhone compared to the 2G, in order to lower the retail price,” the firm’s analyst and teardown service manager, Andrew Rassweiler, said as part of the release of the study. “[This] will allow the company to seed adoption and to capture maximum market share now—while the company still has buzz and a perceived differentiation relative to its competitors.”