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We already knew the iPhone 3G ran up a $175 bill of materials (BOM) on Apple’s tab, according to iSuppli. So, there’s nothing new on that front. But, the newest press release from iSuppli gives us a component-by-component breakdown of costs associated with the iPhone 3G.
While we can’t know how much it costs Apple to ship, market, and service all those iPhone 3G handsets out in the wild, iSuppli’s latest component breakdown pegs Apple’s cost on 8GB iPhone 3G parts at about $175 ($174.33, to be more exact). That figure is a good $53 lower than what it cost Apple to put an original, first-generation 8GB iPhone together. Apple managed to cut costs by reusing the Samsung-sourced CPU from the original iPhone and transitioning to a single logic board, rather than the two separate logic boards that we saw in the iPhone.
Here’s a look at what Apple’s paying for iPhone 3G parts:
iSuppli also estimates that Apple is forking over $50 in technology royalties for each iPhone 3G sold, boosting Apple’s immediate hardware costs to about $225. But, factor in the healthy AT&T subsidy (and presumably other carriers’ subsidies) and Apple’s likely looking at a 55% margin on the iPhone 3G. Not an insignificant profit margin in the mobile market.
About The Author
Will Park
Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...
