Back on June 16, IGM reported that Portelligent generated a "bill of materials" (BOM) indicating the parts inside the 3G iPhone cost $100.
Today, quoting numbers generated by iSuppli, BusinessWeek reports that the 8GB 3G iPhone costs Apple about $173 each to make. The first version of the iPhone was initially said to cost $220 to make, though that figure has since been revised to $226.
"They have done a good job in using what worked well with the first one and making improvements where it mattered," says iSuppli analyst Jagdish Rebello, who also revealed that Apple pays about $45 in licensing fees per handset.
Apple's per-unit profit on an 8GB iPhone works out to about $281, or about 56%, which is inline with the company's margin on original versions of the handset.
It's widely believed that AT&T will subsidize a big chunk of the price of each phone—an estimated $499 for each device. AT&T hopes to make up for the expense through monthly service packages.
In the US, the 8GB 3G iPhone will set buyers back $199 initially and then $70 per month on a two-year contract.
Editor's note: Apple's cut the cost of the handset despite adding 3G and GPS.
Order online and get free shipping. Expires 9 / 15
- How to get photos on to iOS 8 iCloud Photo Library with PhotoSync
- iPhone launch weekend sees 10 million sold
- Thoughts on iPhone sizes
- Apple TV and HomeKit
- iPhone lines and the black market
- Podcast - iPhone pre-orders, iOS 8, Tim Cook Interview + More
- 1Password 5 now available for iOS w/ extensions, touch ID support
- iCloud data gets 2-step verification, new app-specifc passwords
- Apple posts Android switcher guide
- Charlie Rose Tim Cook Interview
- 4 million iPhone orders in first day, up from 2 million for iPhone 5
- Podcast: iPhone 6, Watch, Apple Pay, etc, etc
- New iCloud storage plans rolling out
- Macworld Magazine ends, continues online
- Apple Watch
- The iPhone 6 and 6 Plus
- Apple Pay
- Podcast: iCloud security tips, TheFappening, Apple Event, plus more
- Wired on how iCloud accounts may have been hacked
- My iCloud security tips
- Podcast: Brown M&M, Apple event, wearable, tattoos, Dropbox vs iCloud + More
- That FLIR iPhone heat camera can steal PIN numbers
- Apple special event set for September 9
- Dropbox changes to a single 1 TB Pro plan
- August Smart Lock begins shipping
Browse and search for more articles