iPhone 5 Bill of Materials

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Rafagon

Genius
Gold
Dec 7, 2011
7,566
1,252
113
44
Miami, Florida
#1
I knew Apple was ripping us off quite a bit based on the storage capacity of their iPhones alone, but I had no idea it was this much.

Apparently 16GB of that Flash memory costs them only $9 according to this article.

Estimated total cost of 16GB iPhone 5? $167.50.

List price of same model? $649.00.

Still, no regrets here, as I'm sure is the case with the majority of eiC'ers!

iPhone5-BOM-comparison.jpeg
 

ipod

Member
Bronze
Sep 14, 2007
340
17
18
#2
I too knew that the storage capacity is one of Apples pure profit machines. If they really cared about their consumers they would just make one storage capacity option only, and that should be the highest option and should be $199

But Doubling the storage capacity at $100 a pop seems kind of off to me

But still I got the 32gb
 

parmacrafter

Member
Bronze
Mar 10, 2012
31
9
8
#5
I agree that the mark up seems a bit high. I also have to mention that most all other smart phones only sell at about $100 less than the iPhone (off contract) as the 16GB iPhone. These other phones are also mostly made of plastic. I will give Apple the extra $100 every time. These base materials prices also do not take into effect the cost of the labor and equipment used to produce these phones.

Using Sprint as an example:
iPhone 5 16GB: $650
Motorola Photon: $550
HTC EVO 4G LTE: $550
Samsung Galazy SIII 16GB: $550
 

raqball

Evangelist
Gold
Jan 30, 2011
1,079
199
63
So. California
#7
Bill of materials does not take into account manufacturing, research & development, Apple overhead (bills, employee pay ext..)

If Apple makes no profit they close up shop...

These bill of materials always crack me up because it's honestly just a small slice of the pie..

My .02
 

ipod

Member
Bronze
Sep 14, 2007
340
17
18
#8
Bill of materials does not take into account manufacturing, research & development, Apple overhead (bills, employee pay ext..)

If Apple makes no profit they close up shop...

These bill of materials always crack me up because it's honestly just a small slice of the pie..

My .02
I hear you there. I understand that. But the price they're asking for extra storage space is pretty ridiculous.
 

djwindsor

Contributor
Silver
Jul 7, 2009
755
44
28
Neponsit, NY
#10
Bill of materials does not take into account manufacturing, research & development, Apple overhead (bills, employee pay ext..)

If Apple makes no profit they close up shop...

These bill of materials always crack me up because it's honestly just a small slice of the pie..

My .02
I definitely agree with that comment. I have no idea what the R&D costs (and other ancillary costs) but I am sure their margins are much greater than the industry average. When you compare what other smart phones cost it appears that the Apple tax isn't that bad. Lastly, since I have been able to sell my previous iPhone version my outlay has been minimal. I paid $300 plus tax for the iP5 and it looks like I'll be getting close to $300 for my iPhone 4 which is on eBay now.
 

Hayesimus

Contributor
Bronze
Apr 12, 2012
261
47
28
#11
Yeah. as some have already stated, You have no idea how much money went into designing the phone and developing the software that runs it. Nor how much it costs to market and advertise it and how much of that profit goes to the phone carriers that sell it. The are going to make their money and that will in turn allow us to drool over the next iterations of iPhone. If they just barely scraped by we would all be looking more seriously at Droids. THANK GOD for that high profit margin! :p
 

ipod

Member
Bronze
Sep 14, 2007
340
17
18
#12
But don't you guys think that $100 per double storage space is a bit much? Isn't that really reaching? Not $50, not $70, but $100 flat. $100 exactly.

Ironically this is my 200th post. To commemorate $200 extra for a 64 gb iPhone.

Member since 2007.
Since iPhone 1
 

ednygma

Contributor
Bronze
Mar 9, 2009
427
86
28
Louisville, KY
#13
I could have paid less for a phone with an inferior build and less memory and then bought an sd card to expand it up to the level of my soontobeinmyhand iPhone5 but I chose to swing for the fence and grab myself a 64g i5. If the price was too high the consumer won't buy it. Law of economics and everyone has to let their own personal purchase barometer measure their output.
 

raqball

Evangelist
Gold
Jan 30, 2011
1,079
199
63
So. California
#14
But don't you guys think that $100 per double storage space is a bit much? Isn't that really reaching? Not $50, not $70, but $100 flat. $100 exactly.

Ironically this is my 200th post. To commemorate $200 extra for a 64 gb iPhone.

Member since 2007.
Since iPhone 1
I agree.. They do charge a bit much for the extra storage... 32GB should be $50 more and 64GB $100 more..

Overall though, I am happy with the price of the iPhone and it holds it's value much better than Android devices do..

For instance, last years iPhone 4S 16GB is fetching mid to upper $300's on Craigslist where as the Galaxy S2 16GB (last years version) is low to mid $200's... A 2 year old iPhone 4 16GB is at low to mid $200's..