Friday, February 8, 2013

Pricey iPhone 5 costs just US$168 to produce: study

iPhone 5

The iPhone 5 is going to be one more major success for Apple. Apple sold 
approximately 30 million iPhones last quarter, and that figure is predicted to progress with the launch of the iPhone 5. So how much revenue does Apple make on each iPhone? We know that previous quarter, with sales of 26 million iPhones the product line earned around $16 billion in direct sales revenue, around 46% of the company’s whole take-home for the quarter.
As per TechInsights, the iPhone 5 16GB has an approximated cost of around $167.50 to make; it sells for at least $649 in the U.S. and $699 in Canada. The main expenditure for Apple is the A6 chip, which costs $28; the Qualcomm base band chip costs $25. That up-graded Retina display costs only Apple $18 to produce, only $3 more than the last 3.5-inch part. While these are still forecasts based on what TechInsights is aware of the supply chain, it’s clear that Apple’s big profit is no less than it was in 2011 with the iPhone 4S. If each phone nets Cupertino $482, or somewhere around it, you begin to know why Apple has $100 billion sitting around in the bank, and is among the fastest-growing firms on earth despite its size.
At the same period, Apple Canada is charging $50 extra per iPhone 5 than it did for the iPhone 4S, and companies are charging $20 more for the 16GB device and $10 for the 32 and 64GB units than previous yrs – likely to offset upfront costs.

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