IHS teardown finds iPhone 5S costs $199 to build, 5C even less

By on September 24, 2013, 12:15 PM

A recent teardown of Apple’s latest iPhones from IHS found that Apple spends at least $191 on components to build a 16GB iPhone 5S and up to $210 for a 64GB model. Factor in assembly cost and you’re looking at between $199 and $218 for a phone that sells for either $649 or $849, respectively.

This year’s flagship is actually a little cheaper to build than the iPhone 5 last year even with some new components like the Touch ID fingerprint sensor. If you recall, IHS pegged the original iPhone 5 at around $207.

As we have seen in the past, the phone’s display is the most expensive component of them all – accounting for about $41 when all associated parts are included. Displays were likely sourced from several vendors including Sharp, LG Display and Japan Display Inc.

The colorful iPhone 5C is believed to cost Apple between $173 and $183 to build which is said to include a $7 assembly fee. These handsets (16GB and 64GB) retail for between $549 and $649 off contract, respectively.

IHS analyst Andrew Rassweiler oversaw the teardowns and said the two different models are almost the exact same phone. The key differences of course being that the 5S has the A7 processor, some newer memory chips that consume less power and the fingerprint sensor. Beyond that, the two are basically the same, he said.

IHS’ report isn’t due out until tomorrow but they granted All Things D early access to their findings.

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