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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."
You'd have to actually change something to increase cost.
I assume Apple had been paying Google something for Google maps which was replaced by Apple maps. Depending how you wan to amortize the R&D, that was a unit BoM savings if Google has been getting a per unit fee.
You don't need a high quality camera if all you do is post crappy instagram pics.
i read these and almost every flagship from from every manufacturer is in the $180 to $200 range. Apple's bill of materials tends to be a little higher most times but their margins are also higher because they make one phone for all around the world. iphone 5 and LTE is an exception with different models supporting different frequencies around the world
Depending how you wan to amortize the R&D, that was a unit BoM savings if Google has been getting a per unit fee.
Possibly, but overall Apple is paying a lot more to built out a mapping solution of their own compared to just using Google's. The cost of that would not be figured into the raw hardware calculations iSupply is doing...
I don't think in the end it is a savings.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
How horrible that someone sells a product that cost more than the sum of their part!
We shouldn't have to pay for those millions in R&D and those failed designed they were working on.
We shouldn't have to pay for the salary of the employees at apple.
Heck those guys at Foxconn get next to nothing anyways... Why not go to the next logical step and have them work for free.
Unfortunately running a business you find that things are more expensive than the normal consumer realizes.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
Here's a link to the actual comparison, instead of a blog describing the comparison: http://www.imore.com/iphone-5-vs-iphone-4s-camera
That's why their factories are in the middle-of-nowhere China. The real ironic part is the same people who buy Apple products are the same people who complain about Wal-Mart not offering a "fair wage" to their employees.
sudo make me a sandwich
I read that when Jobs was testing the first iphone prototype, the screen was plastic because it was thought to resist fracturing when dropped. After a few times in his pocket getting scuffed up by his keys, he told the team to replace the plastic with glass which eventually led to Apple using Gorilla Glass. He didn't give a damn how expensive or inconvenient the transition was going to be, an easily scratched face wasn't going on the iphone. Though the backing was scratchable, it was made of stainless steel which meant minor scratches could be buffed out if the owner cared to.
Given Ifixit's 30 second test showing how scuff-prone the new aluminum backing is, it's hard to imagine Jobs having greenlit this particular design choice.
Bigger screen, faster CPU&GPU, more ram, new camera? Oh wait.. they did that.
The people who hate Apple are posting a bunch, too. Slashdot, being an ad-supported site, wins either way.
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
Obviously, Apple spent a lot of money on their new 3D global mapping system, which isn't included in this cost estimate. They've also spent money developing other aspects of the new version of iOS. And they spent money designing the new version of the phone, and it's updated hardware. Of course, they're going to sell so many of these it'll wipe out those costs pretty soon. Still, any new development is risky. Look at all the bad press they're getting over maps! If they have to pull it, it will be a complete loss. Contrary to popular belief, about half of the new products Apple releases are actually flops. But a flop costs as much to develop as a success. Fortunately, Apple is able to charge enough of a markup on their successful products to make up the difference.
Guangdong province (where the vast majority of Foxconn's factories are located) has about 35 million people, within a 2 hour drive of Hong Kong. If that's middle-of-nowhere China then Anaheim is middle-of-nowhere US.
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
Development, for starters.
Which part in the iPhone 5 or iPhone 4(S) develop, for starters?
For one, the CPU. From wiki:
"The A6 is said to use a 1.2 GHz[3][4][5] custom Apple-designed ARMv7 based dual core CPU,[1] rather than standard cores like in previous designs, and an integrated triple core SGX 543MP3[6] graphics processing unit (GPU) with the same performance as the previous Apple A5X processor found in the third-generation iPad. The SGX 543MP3 is running at 266MHz."
Software development has costs too. Even FOSS software has paid developers at times, the success of some FOSS projects has been tied to this fact.
Other reviews have noted that while the iPhone 5 camera is just a little better in normal light, it's much better in low light according to this review shooting in Iceland.
From other tests I seen, it seems to be about two stops better at high ISO shooting. Lower noise and clearer images.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
So he says the iPhone 5 camera is "barely better" than the one in the iPhone 4S. Then in the article he says "But, if youâ(TM)re still not convinced that the iPhone 5 isnâ(TM)t quite a DSLR-replacer just yet, take a look at it compared to a Canon 5D Mark III. That ought to change your mind." Unless he is confused by too many "not"s in one sentence, that seems to say that the camera isn't very good compared to a professional camera. But to quote from the linked article: "The results are pretty amazing â" the iPhone takes worse photos but it certainly stacks up against a $4,000 professional camera. ". In other words, the camera in a $600 phone is not quite as good as a $4,000 professional camera, but it is not far away.
Population density in Guangdong province is 1,390 /sq mi . Let's compare to some other US cities:
Anaheim, CA - 6,600/sq mi (Guangdong is not Anaheim, CA)
San Jose, CA - 5,400/sq mi
So Guangdong is 3 times less densely populated than Anaheim California. You could compare the province to Santa Clara County (1,400/sq m), which has the San Jose metro area within it. However there are places like Gilroy, Morgan Hill, Henry Coe State Park, and other largely uninhabited areas of the county. Just look at a map, or be someone who grew up in the San Jose area (me)
sudo make me a sandwich
Will it blend?
Did you mount a military-grade, variable-focus MASER on an unlicensed artificial intelligence?
Apple: Someone set us up the BOM !!
iSuppli's business model revolves around finding you low prices for components (for a nice, hefty fee, of course) for your next big consumer electronics product; these teardowns are just advertising for that service. In order to pull customers in, they mark down the lowest plausible price for each component; it's unlikely that even Apple can get these low prices for each component.
Practially every teardown they show is low-balled, because there's no way to verify any of these numbers, and lower numbers gets them more contracting business.
First off, yes you would have. It's been a complaint around here since well before the iPad came out. Even sites like Gizmodo and Engadget have features to turn off stories in the weeks approaching Apple releases.
Second, the comments breed the stories. Lots of people comment (love or hate) when Apple stories come up, Slashdot serves ads, we get more stories.
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
Talk about a troll piece. So what you're saying is that aluminium is cheaper than plastic. Therefore apple cut corners by using aluminium. Several members of my family have had the back glass crach on their iphone4, so I'm glad the back is not glass. The statement "apple is it's own worst enemy" is true of every large company. I don't understand why people on both sides are so passionate. It's a damn phone. I used to work in the mobile phone industry. Every company is trying to lower the cost as much as possible and maximize the profit margins. I've owned nokia and motorola phones over the last 15 years and you know what. They are all cheap pieces of plastic. You drop it the wrong way, and bam the thing is dead. Let's not kid anyone. Samsung is just as evil as the next multi-national corporation.
And they couldn't even make it the same thickness as the old iPhone so it would last one day on one charge?
If it didn't last a day I would agree. That's kind of the minimum for me for going without a charge,
But the iPhone 5 still lasts more than a day on a charge. I'm not sure exactly how much more on average having only had it for a few days, but I've not charged it during the day generally while i've had it, and it still has quite a lot of power at night. I think in the end I'd probably end up charging it every other day.
Given that, I'd rather have it be thinner. Though much thinner than this, I don't think they need...
"There is more worth loving than we have strength to love." - Brian Jay Stanley
So why, in an unlocked european iPhone, going with flash size from 16 to 32 GB and from 32 to 64 GB costs 110 euro and to Apple this costs, respectively, 19$ and 39$? Not much development involved, and manufacturing is already factored in.
This is simply the maximum price the market will bear, and the product is developed up until the cost leaves enough profit (for an arbitrary definition of "enough").
This ignores the expense of laying out a new processor design BY HAND rather than algorithm.
Seriously? Comparing an entire province (like a State) to a city? Go on a per-State basis, where New Jersey leads the pack in the US at 1189 people per square mile - less than Guangdong. Guangdong is extremely dense, as is most of the Eastern edge of China.
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
Guess you have never been to Southern Jersey, which is where the "Garden State" name comes from. It's a bunch of open land with cows and farms.
sudo make me a sandwich