Apple is reportedly paying around $203 for each 32GB iPhone 4S that rolls off the assembly line, a phone that retails for $749 before carrier subsidy. At this price, Apple will achieve the same profit margin that they have experienced in previous iPhone launches, says Canadian research firm UBM TechInsights.
UBM came to this conclusion by analyzing the iPhone 4S announcement and factoring in the current market prices for each known component. For example, the A5 processor is valued at $26 and the retina display is $31.
Of interest in the estimated cost analysis is the mention of only 512MB of RAM. Apple typically doesn't reveal RAM capacity and many have speculated that the 4S would include 1GB, up from the 512MB that was found in the iPhone 4.
“Technology-wise, you aren’t seeing anything revolutionary or unexpected from the iPhone 4S”, says Jeffrey Brown, Vice-President of Business Intelligence. “As we predicted in July, the iPhone 4S is a moderate improvement over the iPhone 4 – featuring an A5 processor that has been in use for approximately nine months, an image sensor that puts the handset on par with its competitors, and improved battery life.”
Apple announced the evolutionary iPhone 4S just one day before co-founder and tech visionary Steve Jobs passed away. The 4S features a dual-core A5 processor, a faster wireless network and an 8MP camera with much-improved optics.
The iPhone 4S will be available in 16GB, 32GB and 64GB capacities for $199, $299 and $399 respectively in white and black. Pre-orders start October 7 and availability in the US, Canada, Australia, the UK, France and Germany will be on October 14. The phone will be available on AT&T, Verizon Wireless and Sprint in the US. An additional 22 countries will get the 4S on October 28, with 70 countries having availability by the end of the year.