iSuppli has taken apart a 16 GB iPhone 4 and concluded that the bill of materials of the phone, that is generally believed to cost AT&T $600 a piece, is $187.51.
Apple iPhone 4
“Just as it did with the iPad, Apple has thrown away the electronics playbook with the iPhone 4, reaching new heights in terms of industrial design, electronics integration and user interface,” said Kevin Keller, principal analyst, teardown services, for iSuppli. “However, the BOM of the fourth-generation model closely aligns with those of previous iPhones. With the iPhone maintaining its existing pricing, Apple will be able to maintain the prodigious margins that have allowed it to build up a colossal cash reserve – one whose size is exceeded only by Microsoft.”
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iSuppli estimated the BOM of the 3GS in 2009 at $170.80; the 3G in 2008 at $166.31 and the first iPhone in 2007 at $217.73.
iSuppli said that the most expensive component of the iPhoen 4 is the LCD, estimated at $28.50. The 16 GB NAND flash chip may cost about $27, the 4 Gb DDR-SDRAM chip $13.80 and the baseband chip $11.72. The A4 processor could cost about $10.75, according to iSuppli.
Earlier today, Apple said that it has sold more than 1.7 million iPhones during the first three days of availability. At revenues of $600 (and potentially more) per unit, the iPhone 4 has already brought in more than $1 billion in sales for Apple.
