Tech Insights estimates the iPhone 5 costs about $35 more than the iPhone 4S to make. The most expensive competent is the new A6 processor, which costs $28. The second-most expensive item is the Qualcomm 4G LTE modem, which runs $25.
While it’s a bit more expensive to make than the last model, Apple will still be collecting plenty of cash on the sale of iPhone 5 units. When a wireless carrier isn’t paying for a portion of the device, the 16GB iPhone 5 costs $649. With a wireless carrier subsidizing the cost, it costs $199 but you’re tied to two-year contract.
Sponsored by VB
The cost difference between the $167.50 materials bill and the $649 sales price is $481.50. While some of that money goes into paying for Apple’s operations and marketing, it still makes a hefty profit. Apple collected $8.8 billion in net income last quarter alone.
Apple debuted the hugely anticipated iPhone 5 Wednesday, and preorders for the device started today. Preorders from Apple already have a two-week shipping estimate, and the carriers are about the same with their estimates, indicating huge demand.
You can take a look at Tech Insights’ full chart on the iPhone 5’s bill of materials below.
iPhone 5 photo: Meghan Kelly/VentureBeat
VB's research team is studying mobile user acquisition... Chime in here, and we’ll share the results.