Teardown Finds iPhone 5 Costs Apple About the Same As Did 4S

Nerval's Lobster writes "A physical teardown of the iPhone 5 by IHS iSuppli reveals that Apple has managed to keep its materials and manufacturing costs roughly in line with that of the iPhone 4S. The firm estimated the Bill of Materials for the iPhone 5's low-end variant at $199.00, rising to $207.00 once manufacturing costs are entered into the equation. It tallied the BOM for the 32GB version at $209.00 (or $217 with manufacturing) and the 64GB one at $230.00 (rising slightly to $238 with those manufacturing costs). Compare that to the BOM for the iPhone 4S, which IHS iSuppli estimated at $188 for the 16GB version (rising to $196 with manufacturing costs added in), $207 for the 32GB version ($215 with manufacturing) and $245 for the 64GB version ($254 with manufacturing)." Reader redkemper writes with another kind of comparison of the newest iPhone to its predecessor: "Apple didn't spend too much time talking about the iSight camera at the iPhone 5s unveil event because it's mostly the same as the one found in the iPhone 4S. Thankfully, iMore grabbed an iPhone 5 and iPhone 4S and did a fantastic shoot-out between the two device's rear cameras. [The new camera] just barely edges out the iPhone 4S's year-old camera."

Comments

Camera

[sureshot007]

You don't need a high quality camera if all you do is post crappy instagram pics.

Re:Camera

[macs4all]

The best camera is the one you have with you. And to be fair, iphone 4S produces images that would make my Sony Floppy-based digicam weep.

Nice Ansel Adams quote (IIRC); and you are precisely correct. Anyone who thinks that any lens system than can fit into a phone will be the equal of any lens on a DSLR simply doesn't understand how physics works.

But ya know, it's all about "capturing the moment". And these smartphone cameras are all about that. Which would you rather have: That priceless photo of a loved one that is now gone, but with a little spherical aberration near the edge; or nothing but a fading memory in your brain?

Yeah like,

[yabos]

Bigger screen, faster CPU&GPU, more ram, new camera? Oh wait.. they did that.

Re:Spent less on mapping license didn't they?

[macs4all]

What other costs are there for Apple? 300% markup on list price seems a bit drastic.

No. A 3X markup from raw material and assembly costs to MSRP, up through distribution channels, is actually about right.

Too bad Slashdot doesn't have any readers who have experience in the real world; or they'd realize that those "markups" are very realistic, when all you are considering is the BOM costs.

Are people really so stupid that they don't realize that there are a LOT of other costs other than just the raw materials and CM (Contract Manufacturing) fees?

Go do a BOM cost on your average $700 TV, or $400 A/V Receiver, or perhaps another Smartphone. You'll soon see what I mean. And CARS.... Talk about Mark-up... OMG!

Re:Spent less on mapping license didn't they?

[ColdWetDog]

No, 300% markup on a BOM is pretty bog standard on an electronics device.

Get over it guys, the world isn't designed to give you your toys as cheaply as possible. That's what your parents were for.