iSuppli is back doing what it does best, that is tearing down our beloved gizmos down to their bare bones. This time it is Apple iPhone 4's turn, and the verdict is that the glitzy mean machine costs $188 to manufacture.
The Display
We have all been gushing about its shiny new screen featuring retina display. However, the screen now accounts for a disproportionate price tag of $28.50, up from $19.25 for iPhone 3G S's not-so-hot display.
The Processor
Apple has used the same processor that it used in its other masterpiece iPad. The A4 processor, widely lauded for its smooth and fast operations, contributed $10.75 towards the cost sheet. Steve Jobs's decision to add gyroscope chip to iPhone added $2.60 extra towards the cost. However, seems like Jobs does not regret this addition as he flamboyantly displayed its features during the launch of iPhone 4.
I have got to admit that I could not help being impressed when Jobs, playing a virtual game on the phone, spun around and the chip immediately registered the change in direction and moved a piece in the game. So, I would say $2.60 is not a big price to pay for advanced motion sensing technology. Gyroscope has been added to detect angular or rotational motions in conjunction with accelerometer, which gauges linear motions. The inclusion of gyroscope has been good news for its manufacturers. iSuppli has predicted the market for gyroscope to be worth $220 million by 2014, thanks to Apple's Midas touch.
In Addition…
However, before you start feeling being victimized by Apple, let me add that $188 cost figure does not include any administrative, marketing and selling costs. It also does not include the foremost cost driver, i.e software development costs.
The good news is that though iPhone 3GS have come down to $134 from the lofty heights of $179, the gizmo can be yours for mere $99, Neat, isn't it.
So does this unglamorous cost analysis dissuade me from craving for the new must-have accessory? I think not, I will still be standing in a queue in front of an Apple store, training my hands to hold the phone in the way, big boss Jobs has directed us to.
Via Mobile Crunch
One thought on “iPhone 4 Dissected: Costs $188 to Manufacture”
Means nothing, doesn’t cover tooling costs, designing, packaging, shipping, software and hardware design, patents, research, analysis, time, investment etc.