Published On:Wednesday, July 11, 2012
Posted by abg man
The Hidden Truth About iPhone 4 Production Cost
Share The Knowledge
A single unit of iPhone costs Apple $178 to produce, which it sells for $560!
When it was first released, millions of people lined up to buy the iPhone 4 from Apple. This phone, for which the company charged people more than $500, actually costs them $178 to produce. The production costs were revealed by the research firm Isuppli and here is the breakdown of the costs that occur during production of an iPhone 4.
If you tear down the iPhone piece by piece, you can find out the cost of individual parts used to produce the iPhone 4. According to iSuppli, the most expensive part of the iPhone 4 is its LCD screen. The screen which is made by LG costs Apple $28.50.
The A4 processor is built by Samsung Electronics and costs Apple $10 per unit.
According to isuppli, the gyroscope chip which is made by STMicroelectronics costs Apple at least $2.60. The accelerometer chip is also designed and made by the same company and it costs Apple around 65 cents per unit.
In 2009 the research firm iSuppli found out that the total cost for producing an iPhone 3GS costs Apple $178 to produce. During the next year of its release, iSuppli also revealed that the production costs of the iPhone had gone down.
If the above information doesn’t make any sense at all to you, then in simple language it means that Apple’s gross margin over the iPhone is insane!
In a recent research, it was also revealed that the new iPhone 4S costs as much as $188 to produce in the factory. But the most interesting fact is that even if Apple asks $1000 for an iPhone, people would still line up in millions to get it.
After finding such information, would you still willingly pay for an iPhone costing $500 plus?
[Source: GEEK]
| You Enjoyed This Post Please Take 5 Seconds To Share It. |
