iPhone 4S components cost £120

iPhone 4S components cost £120iSuppli has published a teardown analysis of the iPhone 4S, pricing the various components and ultimately concluding that the 16GB model has a bill of materials (BOM) of just £120.

Considering the 16GB iPhone 4S goes for £499 SIM free, that leaves a heck of a lot of bucks going straight into Apple’s ludicrously deep pockets.

The iSuppli dudes note that there are other costs to take into account, such as manufacturing, software, licensing and marketing, but Apple is clearly taking home a pretty significant profit on each iPhone 4S sold.

The other models weigh in at £130 (32GB) and £155 (64GB). The SIM free prices in the UK are £599 and £699 respectively, which makes the top-of-the-range model all the more sickening.

However, despite the insane mark-up, iSuppli’s Andrew Rassweiler seems quite taken with the iPhone 4S. He writes: “On the outside, the iPhone 4S may have disappointed some with its perceived lack of new features. But on the inside, the latest member of the iPhone line includes a wealth of innovation.”

Head over to the iSuppli press release to discover just why the new iPhone 4S, in terms of components, is so good.

Read more about: Apple iPhone 4SiOS

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JanSt / MOD  Oct. 24, 2011 at 11:12

I hate these calculations. I assume the iSupply guys can make those components from breakfast cereal, and they all build their own PCs and phones before breakfast? What about R&D? Wages, shipping etc etc etc etc

Now, talking about the component costs of a bottle of River Rock tapwater - there's a story.

iSupply are simplifying dumb-down artists - though, yes, granted, there is some informative value in it. But really...

blizzard7  Oct. 24, 2011 at 11:40

Agree with you Jan, but still shows that no matter what you think about the base price, the difference between SKUs is not worth £100.

JanSt / MOD  Oct. 24, 2011 at 11:45

There's clearly money to give Foxconn workers and endusers a break.

Stelph  Oct. 24, 2011 at 12:43

@JanSt - True, the isupply breakdowns dont tell the whole story as like you say the R&D can be a significant amount of money and usually isnt taken into account with these things, however if apple managed to sell 4 million in the first weekend and there was a profit of £370 per phone then I doubt apple put £1480million into development :) (and thats assuming all sold were 16GB)

Its an amazing market niche that apple has created for itself, and year on year the niche gets bigger it seems!

JanSt / MOD  Oct. 24, 2011 at 12:54

Amazing is right. Even more so when one considers the overall economy since '08!

I was just browsing the 'phones wanted' section on adverts.ie - almost all ads are 'looking for iphone'!!! A couple of SGS2s, and dozens and dozens of iPhones.

jetblack2  Oct. 24, 2011 at 13:42

(the cheapest)oO

luke-kirk  Oct. 24, 2011 at 15:51

hey, if you could you would. Its our fault the consumer for purchasing it at the given price. if you don't like it then get Sony.

JanSt / MOD  Oct. 24, 2011 at 15:56

Absolutely, luke... Though, I would draw a line at low wage slavery, but hey - one man's fascism is another's free market, eh? :p

JanSt / MOD  Oct. 24, 2011 at 15:57

The preceding post was me as a non-mod human being... Now back. ;)

luke-kirk  Oct. 24, 2011 at 15:59

:p indeed.


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