Apple Pays $187.51 To Make An iPhone 4

Jun 28 2010, 7:14pm CDT | by Mark Raby

The cost of all the parts of an iPhone 4 is less than $20 above that of the iPhone 3GS, according to an analysis from electronics research group iSuppli.
The firm took the iPhone 4 apart and valued each of the components inside, and came up with a total figure of $187.51.

That's not much more than the 3GS, which iSuppli says contains $170.80 worth of hardware. Of course, research and development costs are not included.

The most expensive part of the iPhone 4 is its LCD screen. According to iSuppli, that costs $28.50. The actual processor itself was only valued at $10.75.

For the end customer, an iPhone 4 costs $199, but that's with a service contract that AT&T subsidizes. So Apple's actual revenue per phone gives it a nice margin.

Kevin Keller, iSuppli analyst, said that with the iPhone 4 Apple "will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve."

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Mark Raby
Based in New York City, Mark follows the consumer electronics industry like a hawk. A published book author, he has a particular affinity for 3D technology and video games, and as such will surely be in the market for a new pair of glasses soon. Mark can be contacted directly at mark@i4u.com.