New analysis shows the iPhone 5's humble manufacturing cost (Photo : Nowhereelse.fr)
It has never been a secret that Apple is selling the iPhone 5 at a premium, but a recent report by iSuppli reveals that the device only cost around $207 to manufacture, an estimate that may startle some consumers. The IHS iSuppli Teardown Analysis Service took a look at each of the iPhone 5's components and valued them individually for the study.
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The analysis shows that "The new iPhone 5 carries a bill of materials (BOM) of $199.00 for the low-end model with 16Gbytes of NAND flash memory, according to a preliminary virtual teardown conducted by the IHS iSuppli Teardown Analysis Service. When the $8.00 manufacturing cost is added in, the cost to produce the iPhone 5 rises to $207.00. For the 32Gbyte version of the iPhone 5, the BOM cost increases to $209.00, while 64Gbyte version is estimated at $230.00."
The site clarifies that the final price estimates did not factor in royalties, licensing, software, and other potential costs.
Without a contract, the iPhone 5 16GB is priced at $649, the 32 at $749, and the 64 at $849. Subsidized by carriers, the price drops to $199.99, $299.99, and $399.99 for the respective sizes. On eBay, iPhone 5's are selling for upwards of $1000.
In terms of data plans, Verizon costs $40 to $150 per month, AT&T will range from $100 to $245 a month, Sprint will offer unlimited data for new subscribers, and Cricket will likely provide pre-paid service for $55 a month.
Despite the gadget's price, the iPhone 5 has compelled people to sleep on sidewalks for days in order to get their hands on the device launch day.