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.
iPhone 5 bill of materials estimated at $167.50, $35 more than the iPhone 4S
Updated Dec 19th, 2018 8:35PM EST
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iPhone 5
Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.
