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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.
You don't need a high quality camera if all you do is post crappy instagram pics.
Development, for starters. Apple's spent quite a bit of time developing both the hardware and software behind the iPhones, costs which naturally have to be covered, and free services like iCloud do cost money to maintain. Obviously Apple is making a boatload of money off the iPhone, and they should they are a business and their goal is to make money, but this is like saying Windows costs Microsoft a nickel to make because they just had to stamp a DVD.
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
Bigger screen, faster CPU&GPU, more ram, new camera? Oh wait.. they did that.
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
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!
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.
Faster! Faster! Faster would be better!