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iPhone 8GB Costs Just $220 to Make?
July 3rd 2007

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At the time of the iPhone's launch in January, iSuppli estimated that the 8GB model cost Apple around $280 in components and labor. A more recent disassembly of the actual product suggests that figure was broadly accurate – a 4 gigger costs Apple around $200, as Slippery Brick reports.

Citing data from Portelligent, a company that takes apart gadgets for a living, it appears that the 8GB iPhone costs little more – just $20 more – than the 4GB model to make.

The touch screen is the most expensive component - it may well be unique, at least for now; it's certainly not off-the-shelf. German firm Baida is thought to be the manufacturer. Other major components, such as the flash storage and processor, come courtesy of Samsung.

Of course, there's no way of figuring out what discount Apple gets for volume, but it would appear that, R&D, marketing, sales and distribution aside, Apple is making a healthy margin on the iPhone.

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