REVEALED: What $799 iPhone 5 Is REALLY Worth?

The 16GB iPhone 5 costs around $207 to make, according to analysts IHS iSuppli, who ripped the new Apple apart to see what's inside. 

 The new iPhone 5 carries a bill of materials (BOM) of $199 for the 16GB model, plus $8 manufacturing costs (thanks China), bringing the total cost to $207, slightly pricier than iPhone 4S. 

For the 32GB iPhone 5, the raw material cost is a tad higher at $209, while the 64GB version is estimated to cost Apple $230 to make, according to iHS teardown analysis.

The iPhone 5 unveiled finally by Apple last week, isn't cheap starting at RRP $799 for 16GB, $899 for 32GB and and just under the $1000 mark for 64GB model outright ,but can be purchased on plans from all telcosstarting at around $60 p.m +$6 handset repayment.

It is also worth noting iHS figures do not include other expenses such as software, licensing, royalties or other expenditures like marketing and distribution. 

4G technology (estimated at $34) using Qualcomm's second-generation MDM9615 processor, and longer, thinner 4" display  with integrated, in-cell touch sensing technology, make the i5 costlier to make than the previous 4S, says Andrew Rassweiler, teardown analyst, IHS. 

"While the price of some components, such as NAND flash, has fallen during the past year, the iPhone 5's overall BOM has increased mainly because its display and wireless subsystems are more expensive compared to the iPhone 4S."

In fact, the costliest part of the new iPhone 5 is  the 4" display, estimated to cost $44. 

Other major costs include the potent A6 dual-core processor chip which is a more expensive $17.50, compared to $15 for the A5 chip that featured on 4S. 

The 16GB of NAND flash is estimated to cost $10.40, almost half the price it did just one year ago. 

"The iPhone 5 makes a big evolutionary step in technology that we have not seen elsewhere with the use of in-cell touch sensing," Rassweiler said. 
Most other smartphone LCD screens use a completely distinct capacitive touchscreen assembly that is physically separate and placed on top of the display. 

The new Apple partially integrates the touch layers into the display glass, making it thinner and reducing the number of parts required to build display that senses touch without the need for a separate capacitive touch layer, the analyst notes. 

IHS believes there are at least two different versions of the iPhone 5—each with multiband filters that will support as many global markets as possible with as few versions of the product as feasible.

"The Apple way is to pack all of the features needed to support as many carriers as possible with a single product." 

i5 goes on sale this Friday 8am in Apple store and telcos nationwide

No comments:

Post a Comment