iPhone 5 Bill of Materials

Discussion in 'iPhone 5' started by Rafagon, Sep 14, 2012.

  1. Rafagon

    Rafagon Genius
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    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
     
  2. ipod

    ipod Member
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    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
     
  3. Rafagon

    Rafagon Genius
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  4. fury

    fury Evangelist
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    I don't buy that linear increase in price of the higher capacity flash chips. 64GB on a single flash chip isn't just 4x as expensive as 16GB - it's why the price per GB for SSDs increases as the size goes up too.
     
  5. parmacrafter

    parmacrafter Member
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    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
     
  6. ipod

    ipod Member
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    It's assembled in China, so virtually nothing.
     
  7. raqball

    raqball Evangelist
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    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
     
  8. ipod

    ipod Member
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    I hear you there. I understand that. But the price they're asking for extra storage space is pretty ridiculous.
     
  9. Iloveiphones

    Iloveiphones Genius
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    It's the perfect price.

    Everyone bought the first iPhone for a lot more money and less GB and features.


    Sent from my iPhone using iCafe app
     
  10. djwindsor

    djwindsor Contributor
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    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.
     
  11. Hayesimus

    Hayesimus Contributor
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    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
     
  12. ipod

    ipod Member
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    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
     
  13. ednygma

    ednygma Contributor
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    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.
     
  14. raqball

    raqball Evangelist
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    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..
     
  15. phonejunkie30

    phonejunkie30 Member
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    why is it ridiculous its on par with every other flagship phone they all are within the same price range give or take a 100 bucks...
     

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