Manufacturer Discussion : Apple : Apple's £499 iPhone 4S only costs £130 to make, say experts
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The news might come as an unwelcome surprise to those who queued overnight for Apple's new iPhone 4S last week - but it appears the components inside are worth just a quarter of the asking price of the phone.
A 'teardown' report from iPhone specialists iSuppli revealed the components inside Apple's new iPhone 4S cost just £120, with a small manufacturing cost on top.
Critics of Apple often point to the high prices of the handsets.
Samsung's Galaxy S 2, which offers comparable specs to iPhone 4S, and a much larger screen, costs just £400.
Microsoft CEO Steve Ballmer famously dismissed the first iPhone as 'the most expensive phone in the world.'
The new version also shows Apple is switching suppliers.
Apple chose a Hynix Flash memory chip instead of Samsung, as in previous iPhones.
It may be a reflection of the worsening atmosphere between the two companies.
Samsung's phones sold more than iPhone for the first time last quarter, and the companies are involved in a bitter legal dispute spanning several continents relating to the patents behind iPhone and Android devices.
The report, from iSuppli, revealed the cost of components inside a 16Gb iPhone 4S.
The 4S is more expensive to make than the previous iPhone 4.
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Posted: 2012-01-05 03:09:07
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Apple with 70% margins for each iPhone 4S sold
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Posted: 2012-01-05 06:57:17
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