New Delhi: Apple is spending $167.50 to make each 16GB iPhone 5 that the company sells for $199 (with the standard two-year wireless contract), according to a CNET report citing an initial estimate calculated by research firm UBM TechInsights.
The firm dissected the entry-level iPhone 5 and estimated the cost of each of the various components.
"The new 4-inch 1136x640 pixel display costs $18 to build, the touch screen $7.50, and the battery $3. The A6 processor goes for $28, while the camera costs $10 and the built-in WiFi/Bluetooth/GPS is only $4. Add in the cost of several other components, and you end up with a BOM (bill of materials) of $167.50," said the report.
When compared to its predecessors, Apple shells out $132.50 to build the 16GB iPhone 4S, according to TechInsights' estimates, while the 16GB iPhone 4 costs Apple $112.
In a nutshell, an iPhone 5 costs Apple $35 more than an iPhone 4S.
TechInsights promises that it will dismantle the new iPhone and check out its interiors once the device goes on sale on September 21. The new break down is expected to yield a more accurate estimate.
The Apple iPhone 5 comes in either white and silver or black and slate. Its prices start at $199 for 16GB (with a two-year service contract). The iPhone 5 will be available in the US for a suggested retail price of $199 for the 16GB model, $299 for the 32GB model and $399 for the 64GB model.
A day after the unveiling of the iPhone 5, Apple's website also revealed the prices for the unlocked versions of the phone. The 16GB model is priced at $649, 32GB for $749 and $64GB for $849.
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