Phone 4 Costs Only $187.51 To Make
The research group iSuppli said Monday that Apple Inc’s new iPhone 4 costs about $20 more to make than its predecessor, the iPhone 3GS.
ISuppli estimated that the cost of the new iPhone 4, which went on sale June 24, was about $187.51. That is more than iSuppli’s estimate for the iPhone 3GS, Apple’s last-generation smart phone.
Estimates do not include manufacturing, software, marketing and other costs.
The priciest part of the iPhone 4 is the new, higher-resolution LCD screen, which iSuppli estimates could cost up to $28.50. Flash memory costs about $27. According to iSuppli, Apple’s processor costs $10.75, and the capacitive touch screen costs $10.
Apple’s iPhones are on sale for $199 or $299 depending on whether a 16- or 32-gigabyte version is purchased.
Kevin Keller, an iSuppli analyst, said in a statement that despite the major design overhaul Apple gave the iPhone, the gadget maker "will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve."
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