Loading ...Apple 3GS Cost $179 To Build, Sells For $199
In building the iPhone 3G S, Apple managed to punch up the product line without spending much more on components, a teardown analysis showed.
Researcher iSuppli found that the cost of components and other other materials for Apple’s latest smartphone was $172.46. Add the manufacturing expense of $6.50, and the total is $178.96, or a mere $4.63 more than the older generation iPhone 3G.
ISuppli’s cost estimate does not include other costs associated with a product, such as marketing, distribution and the accessories bundled with the device. Nevertheless, the teardown indicates that Apple was able to boost the iPhone’s performance without dramatically increasing expenses.
The new, low-end iPhone offers double the memory of last year’s low-end model, without costing Apple much more to make. ISuppli conducted its teardown on the entry-level 16 GB version of the iPhone 3G S, comparing it to the low-end 8 GB iPhone 3G based on pricing in July 2008. AT&T (NYSE: T), the exclusive iPhone carrier in the United States, is offering the latest iPhone for as low as $199 with a two-year data contract, the same deal as with the older product when it first launched. AT&T today is offering the older phone with a contract for $99.
Full Story Via InformationWeek
Filed under: Technology News
