Study: New iPhone Costs $173 to Make
Apple’s upcoming second-generation iPhone is expected to cost $173, a significant reduction from its predecessor, which will likely lead to greater profits for the company. That’s according to the results of a “virtual teardown” of the new device, conducted this week by research firm iSuppli Corp.
The phone, coming July 11, carries an opening MSRP of $199.99 (or $299.99 for a version with more memory.)
“At a hardware BOM and manufacturing cost of $173, the new iPhone is significantly less expensive to produce than the first-generation product, despite major improvements in the product’s functionality and unique usability, due to the addition of 3G communications,” the firm’s director and principal analyst for iSuppli, Dr. Jagdish Rebello, said as part of the announcement of its findings. “The original 8Gbyte iPhone carried a cost of $226 after component price reductions, giving the new product a 23 percent hardware cost reduction due to component price declines.”