New iPhone 4S Costs Apple $196 to Make

Apple has recently launched its new iPhone 4S, which is identical to previous generation iPhone 4 in design but completely revamped from inside. The new iPhone 4S is completely different from previous generation model in terms of specifications. You will be surprised to know that with all its new specifications, it costs Apple just $196 to make. This has been revealed by the folks at IHS iSuppli who have torn down the new iPhone 4S and exposed its inner work so as to find out its manufacturing and components costs. The firm released their analysis of the Apple’s new device on Thursday.

Although, the new device is almost identical to its predecessor, all the changes have been made inside. Interestingly, the changes made inside over the previous device only accounted for a 50 cent cost increase.

According to firm’s analysis, the 16GB iPhone 4S carries an estimated bill of materials (BOM) of $188; the 32GB iPhone 4S carries an estimated BOM of $207, while the 64GB iPhone 4S carries an estimated BOM of $245. If you can recall, the iSuppli estimated the BOM for 16GB iPhone 4 as $187.51.

iFixit has some interesting information for us which they have collected while their tearing down of new device. According to iFixit, the Apple used Qualcomm baseband chip costing $14-$15 in its new device rather than purchasing the baseband chip from German chip maker, Infineon, which has been acquired by Intel in 2010.

Furthermore, reports suggest that Apple in its new device used Hynix for flash memory in place of Samsung which has been used by Apple in previous devices. Perhaps, the on-going legal battle between the two companies forced Apple to take this step. But, if this is the actual reason than why Apple keep turning to Samsung for its A5 processor, while some recent reports also suggest that Samsung will manufacture A6 processor for Apple as well.

Similarly, the research firm also suggested that the 8-megapixel camera used in iPhone 4S cost $17.60 to Apple. However, research firm clearly said that it has been a tough task for them to trace the part back to its supplier. Earlier it had been reported that the sensor used in the new device was supplied by Sony, but we cannot ignore the potential of Largan and Omnivision here.

It is important to note here that the estimates provided by research firm don’t include costs for labor, shipping, patent licensing, or software development.

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