Source: Tom's Guide US | Keywords: apple, iphone, 3g, 3gs, phone | Themes: Smartphones, 3GSM
It costs nearly the subsidized price just to make one.
When a new device comes out, it’s interesting to find out how much it costs – not just what it’s priced at for consumers, but just how much it costs to build. The latest new gadget to go under the knife for a cost analysis is the new Apple iPhone 3GS.
According to iSuppli’s teardown, the iPhone 3GS with 16 GB memory costs $178.96 just in parts.
"The entry-level, 16Gbyte version of Apple Inc.’s new iPhone 3G S carries a BOM cost of $172.46 and a manufacturing expense of $6.50, for a total of $178.96," said Andrew Rassweiler, director and principal analyst, teardown services, for iSuppli.
"This is slightly higher than iSuppli’s estimate of $174.33 for the original 8Gbyte iPhone 3G based on pricing in July 2008. Although the retail price of the 16Gbyte iPhone 3G S is $199, the same as for the 8Gbyte version of the original iPhone 3G, the actual price of the phone paid by the service provider is considerably higher, reflecting the common wireless industry practice of subsidizing the upfront cost of a mobile phone and then making a profit on subscriptions."
Mind you, the figure of $178.96 is just the bill of materials. It does not include other costs, including manufacturing, software development, shipping and distribution, packaging, royalty fees and miscellaneous accessories included with each phone.
Check out iSuppli’s full listing for a detailed part by part cost. Also, if you want to see what the guts of the iPhone 3GS looks like, click here for pictures of it disassembled.
-
Previous News Article
Sharp LCD HDTV's Banned From... -
Next News Article
NSFW: Apple Approves First Adult...
Ya but it costs $200 + $1000+ to buy one. I think they can spend $180+ to get it on the shelves.
"The entry-level, 16Gbyte version of Apple Inc.’s new iPhone 3G S carries a BOM cost of $172.46 and a manufacturing expense of $6.50, for a total"
Okay, we got that part...
"Mind you, the figure of $178.96 is just the bill of materials. It does not include other costs, including manufacturing, software development..."
So is manufacturing included in the original cost or not?
It is not to bad for apple charge $199 for the phone. The only thing that I don't like is the att phone service and plans.
I would like to know which new smart phone and carrier doesn't requires a 2 year plan.
Oh shit! someone tell apple they aren't being greedy enough!
Apple doesn't charge $199 for the phone. Apple charges about $599 for the phone. AT&T eats more than half of the cost to get it into the consumers hands for cheaper. I know that marketing, design, and all of the other work that goes into making a cell phone is expensive but it isn't $400 per device. I would say Apple is making a hefty profit on each device sold. Good for them. Making a ton of money and most people wouldn't know anyways because AT&T sells it for so cheap.
Oh, they're only making a profit of 235% then, or $420.04 per iPhone 3G S. That only totals to about half a billion dollars of profit on the 3GSs they've sold so far. At least Steve Jobs will have his medical expenses covered.
^^exactly. AT&T pays Apple a bunch of money so that the phone itself is cheaper, giving Apple the profit they are looking for. Then, AT&T charges $90 for 450 minutes and data/texting. For unlimited minutes and data/texting, the price is $150 month.
For 24 months, AT&T will make over $2000 in pure profits (for this example towers, etc, are paid for by the lower phones/contracts.) since data transmission costs next to nothing. So, for the 17 million iPhone and iPhone 3G (NOT INCLUDING THE iPHONE 3GS), that is $34 BILLION in profit, on the iPhone ALONE. Add in the oh, lets say 5 million iPhone 3GS's sold so far (rough estimate) and they have another 10 BILLION in profit.
Yes, a little of this goes to subsidize the cost of the phone, but for AT&T, that amount is just a paltry sum. And this is just AT&T, not all the other cell phone companies.
I just realized how insane cell phones are. I was just in a verizon store, and found out that i could 1) no longer buy a Moto Q9c and 2) it would have to come with a data plan from now on. This is how verizon sucks the money out of everyone who wants a smartphone.
/end rant
Really, the iPhone 3G S fixes a bunch of the shortcomings of the 3G, but it is still too damn ridiculously pricey. I'm not attributing this just to the price of the iPhone, but the expensive plans. Price, AT&T, and lack of multitasking support are the only things preventing the iPhone from reaching world domination, and until those issues are addressed, I will never purchase one.
Why oh why there is anyone who make BOM of a Printer INK?
It is not to bad for apple charge $199 for the phone. The only thing that I don't like is the att phone service and plans.I would like to know which new smart phone and carrier doesn't requires a 2 year plan.
There's a whole lot of unlocked phones you can legally buy and service that doesn't require 2 year plans. I got an unlocked N97 with 32+16 gigs of internal Flash. Also got an unlimited HSDPA data monthly plan for $16/month in Singapore. So, it's at least possible.
He was reffering to finding a subscription in the US with the purchase of a smart phone. in the US buying an unlocked smart phone is not that simple, they do this from regullar stores like Best buy and there is not cheap. Grey market for cell phone in the US is not that popular with average Joe, like it is in the rest of the world...Keep that in mind...Most of the articles you read here are reffering tot he US market
Why oh why there is anyone who make BOM of a Printer INK?
Not much at all.
"The entry-level, 16Gbyte version of Apple Inc.’s new iPhone 3G S carries a BOM cost of $172.46 and a manufacturing expense of $6.50, for a total"Okay, we got that part..."Mind you, the figure of $178.96 is just the bill of materials. It does not include other costs, including manufacturing, software development..."So is manufacturing included in the original cost or not?
I was gonna say the same thing. To answer your question, the $178.96 is including material costs and manufacturing costs but still leaves out some things. The only problem here is that Tom's doesn't know how to read, proofread, or edit in any shape or form.
Apple doesn't charge $199 for the phone. Apple charges about $599 for the phone. AT&T eats more than half of the cost to get it into the consumers hands for cheaper. I know that marketing, design, and all of the other work that goes into making a cell phone is expensive but it isn't $400 per device. I would say Apple is making a hefty profit on each device sold. Good for them. Making a ton of money and most people wouldn't know anyways because AT&T sells it for so cheap.
I would much rather AT&T eat the cost than me
Unless they are seriously getting screwed on some of the charges from their suppliers, I call BS on this. 16gb of flash should be piss cheap now, you can buy a 16gb flash drive for like $30-40 now, and that's including the retailer and manufacturer taking their cut. This is probably just a puff piece to justify outrageous Apple prices. Let me guess, parts for a Macbook costs $1800, right? They're not making a dime....
and doubling the flash costs apple $10 but they tack on $100... thats where they make their money
Unless they are seriously getting screwed on some of the charges from their suppliers, I call BS on this. 16gb of flash should be piss cheap now, you can buy a 16gb flash drive for like $30-40 now, and that's including the retailer and manufacturer taking their cut. This is probably just a puff piece to justify outrageous Apple prices. Let me guess, parts for a Macbook costs $1800, right? They're not making a dime....
Right, iSupply is an Apple shill... In a word, no. In several words: consider the fact that the memory has to be ultra-low-power, relatively fast, and most importantly very compact, and it is not your run of the mill bargain bin USB stick component.
In other news, my Blackberry Storm is still made from more expensive components. Take that, Apple elitists.
joebob2000: That was the dumbest post I've ever read... Is iFlash memory made of solid platinum? Please explain the difference between that and the flash memory that peasants use... and explain why it's sooooooo much more expensive to make... We know that the LCD part of the phone doesn't cost that much either, nor are the CPUs used in phones that expensive, so yes, anything mass produced in millions of units shouldn't cost that much....
joebob2000: That was the dumbest post I've ever read... Is iFlash memory made of solid platinum? Please explain the difference between that and the flash memory that peasants use... and explain why it's sooooooo much more expensive to make... We know that the LCD part of the phone doesn't cost that much either, nor are the CPUs used in phones that expensive, so yes, anything mass produced in millions of units shouldn't cost that much....
You try making over 128 billion transistors fit on the head of a pin and run off of 3.3v, let me know how cheap it turns out for you.
Let me rephrase: If you think iSupply is wrong, you stand to make a LOT of money as the only person in the components business who knows how much things actually cost. Yet somehow I doubt your thorough explanation of "it shouldn't cost that much" is going to go very far in the professional world.
I would much rather AT&T eat the cost than me
Oh youre surely eating the cost with that data plan...
There certainly is a shitload of apple tax on there!
in Canada the 3Gs is selling with a 3 year contract for $299 (32 gig) no contract is $780 locked!
Im getting the 3Gs on the 11th (upgrade) and my 3g will be extra... i already got ultrasnow running on it and will be pay as you go, no data for my son. (wifi only will work)
I know thier are a lot of Apple haters here and im one of them... But jailbroken Iphone is a pretty awesome device, i love mine.
Damn...
Guess I have to either get a BlackBerry, or just steal someone else's iPhone.
=D
Not much at all.
Thank you for informing us.
I never use a priner anyways, I just use email and whatever else. However, my father likes to print off 50 pages of colour pictures at a time... it becomes quite expensive.
Brand New Original : iPhone 3G S 32GB For Sell
Telcel Electronics Product Prices List
Website : telcelt.page.tl
Apple iPhone 3G S 32GB
Model: iphone3gs32gb
SKU: 35007270L
This is a bulk order for 10 phones. Please allow 5-10 business days for shipping. We ship directly from our warehouse.
Manufacturer: Apple
Condition: New
Shipping weight: 15 lbs
Product Description
iPhone combines three products - a revolutionary mobile phone, a widescreen iPod with touch controls, and a breakthrough Internet communications device with desktop-class email, web browsing, maps, and searching - into one small and lightweight handheld device. iPhone also introduces an entirely new user interface based on a large multi-touch display and pioneering new software, letting you control everything with just your fingers. So it ushers in an era of software power and sophistication never before seen in a mobile device, completely redefining what you can do on a mobile phone.
Additional Features
aGPS
Details
Dimensions (WxDxH): 62 mm x 12 mm x 116 mm
Weight: 135 g
Phone Design: Candy bar
Data
Internet Browser: Yes
Wireless Interface: Bluetooth 2.1 EDR, IEEE 802.11b, IEEE 802.11g
Battery
Battery: Lithium ion
Talk Time: Up to 600 min
For any interest ..
Contact : tel-cel@live.com