16GB iPhone 5 has bill of materials of $199, $207 after manufacturing

Shawn Knight

TechSpot Staff
Staff member
Apple's 16GB iPhone 5 carries a bill of materials (BOM) of $199, according to a preliminary virtual teardown from IHS iSuppli. The overall cost rises to $207 once the cost of manufacturing is added which excludes other expenses like software,...

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MilwaukeeMike

TS Evangelist
I'm no apple fan, but these BOM costs are meaningless. What's the BOM on Windows 8? the $.02 for the DVD? Price (and worth) is determined by what someone will pay, not the materials it takes to build. What did Apple spend on building, upgrading and supporting iOS? How much did they spend on design for this phone? Every phone has many engineering issues that cost many expensive man hours to figure out.

The BOM is the variable cost of producing the iPhone. The fixed costs are millions of dollars and always left out of these articles. Neither is related to the selling price. If they based the selling price on costs to produce Duke Nukem Forever would have costs $10,000 a copy.
 

Jesse

TS Evangelist
They aren't meaningless, MilwaukeeMike, and no one said anything about their profit margin as it seems you are implying. In fact, Shawn even pointed out in the article that it doesn't include licensing or software.

It's very interesting to see this breakdown of component cost. At least it is for me.
 
G

Guest

MilwaukeeMike Then divide those costs between the 10s of millions of phones they sell. ;) Not to mention, I'm sure Apple takes a nice cut from each app sold through ITunes.

I mean, I don't think we really need to get into just how much money Apple is making per phone. They were, at least in the past year, sitting on over $100 billion dollars in cash holdings...
 

ghasmanjr

TS Booster
I believe that the iPhone is pretty much the only device from Apple that hasn't been subjected to the "Apple Tax". Well...the 16gb model at least. This phone is cheaper than the Galaxy S3.
I definitely know that those damn MacBooks and iPads are horrendously overpriced though.
 

Per Hansson

TS Server Guru
Staff member
I believe that the iPhone is pretty much the only device from Apple that hasn't been subjected to the "Apple Tax". Well...the 16gb model at least. This phone is cheaper than the Galaxy S3.
Umm what?
Galaxy S3 16GB: 4500SEK
iPhone 5 16GB 7000SEK
iPhone 5 32GB 8500SEK
iPhone 5 64GB 10000SEK
 

Arris

TS Evangelist
I'm no apple fan, but these BOM costs are meaningless. What's the BOM on Windows 8? the $.02 for the DVD? Price (and worth) is determined by what someone will pay, not the materials it takes to build. What did Apple spend on building, upgrading and supporting iOS? How much did they spend on design for this phone? Every phone has many engineering issues that cost many expensive man hours to figure out.

The BOM is the variable cost of producing the iPhone. The fixed costs are millions of dollars and always left out of these articles. Neither is related to the selling price. If they based the selling price on costs to produce Duke Nukem Forever would have costs $10,000 a copy.
Sure the cost of the physical parts isn't the sum of all the costs of making an iPhone5. But seriously, it's got a few additional features and a bigger screen. Most of the development costs should have been absorbed by the work done on previous generations of the product and the moneys from the sales. But I do agree, the BOM never really gives a clear picture of actual cost/value.
 
G

Guest

Don't forget another cost like: marketing cost, iStore maintenance cost, shipment, legal cost, box/packaging cost etc etc..
 
G

Guest

No comments on the manufacturing costs? How much of that goes to wages?
 
G

Guest

For the people that can't read: They are price basically the same.


Galaxy S3 16 gig
[FONT=Helvetica][SIZE=11px]No Term[/SIZE][/FONT][FONT=Helvetica][SIZE=40px][SIZE=16px]$[/SIZE]649[SIZE=16px].95[/SIZE][/SIZE][/FONT]
[SIZE=6][FONT=Lucida Grande]
[/FONT]
[/SIZE]

[FONT=Lucida Grande][SIZE=24px]No Term $699[/SIZE][/FONT]
[FONT=Lucida Grande][SIZE=18px] [/SIZE][/FONT]
 

Neojt

TS Addict
Dont forget R&D cost .. I mean I must cost tons to make innovative changes like making it 1 icon taller
 
G

Guest

Is everyone here in *****? BOM, bill of MATERIALS, MATERIALS, MATERIALS.
not Bill of Marketing, or Bill of Wages, Bill of Development, Bill of Maintenance or whatever other Bill...

holly mother! Bill of Materials.
get it? got it? Done!
Next please!
 

Jim$ter

TS Booster
iPhone 4s 16gb - $200 last year
Galaxy s2 - $200 last year

iPhone 5 16gb - $200
Galaxy S3 - $200
That's the subsidized cost...The iPhone 16GB sells outright for $649 and supposedly Apple charges around that price per phone to the carriers.

So you figure Apple makes around $200-$500 per phone.... times the Millions they are selling.. I don't think they are hurting at all.
 

Vrmithrax

TechSpot Paladin
I'm always amazed at how all of the phone (and mp3/iPod) prices completely screw us on memory costs, and nobody ever seems to notice or care. It's $10 in parts to double to 32Gb, or $20 to quadruple memory to 64Gb, yet we pay $100 and $200 premiums (respectively) for those memory upgrades, smiling like *****s while they bend us over...
 
G

Guest

[SIZE=13px]"Is everyone here in *****? BOM, bill of MATERIALS, MATERIALS, MATERIALS.[/SIZE]
[SIZE=13px]not Bill of Marketing, or Bill of Wages, Bill of Development, Bill of Maintenance or whatever other Bill...[/SIZE]
[SIZE=13px]holly mother! Bill of Materials.[/SIZE]
[SIZE=13px]get it? got it? Done![/SIZE]
[SIZE=13px]Next please!"[/SIZE]
[SIZE=13px] [/SIZE]
[SIZE=13px]So, what are you trying to say?[/SIZE]
[SIZE=13px] [/SIZE]
[SIZE=13px]"get it? got it? Done!"[/SIZE]
[SIZE=13px]I don't think you do understand it either, you sounds just another clueless person who got no idea what your talking about..[/SIZE]
 
G

Guest

[SIZE=13px]"Dont forget R&D cost .. I mean I must cost tons to make innovative changes like making it 1 icon taller"[/SIZE]

[SIZE=13px]Now, I understand why I need to pay about $849 while the BOM+manufacturing just about $238.. the rest of my money all go to the one-extra-row-icon. It's clear this new feature has cost very large amount of fortune for apple *LoL*[/SIZE]
 

PC nerd

TS Booster
Surely no one here is surprised?

We all know Apple are conmen. They will always rip you off. No change there.
 

Ultraman1966

TS Booster
The price of a product dictated by how much people are willing to pay. If you can stop those *****s from queuing up en masse to buy this latest gadget then naturally prices will be dropped. Supply and demand, simples!