iPhone 5 Bill Of Materials

For anyone wondering: Yes, Apple (AAPL) will be able to turn a profit on the iPhone 5. The EETimes reports that TechInsights’ priliminary estimate of the 16GB iPhone 5’s bill of materials totals $167.50, more than previous models but still significantly less than its $649 retail price. Among other things, TechInsights found that Apple’s A6 processor costs $28 (versus $21 for the A5 chip), its four-inch display costs $18 (the old 3.5-inch display cost $15) and its LTE modem costs $25 (its previous Qualcomm 3G modem cost $14). Overall, the bill of materials for the iPhone 4S cost $132.50, or $35 less than the iPhone 5.