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Ilse Jurriën : September 25th 2012 - 16:20 CET

What does the iPhone 5 cost?


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AppleWhat are the production costs of the new iPhone 5 ? Just like with the previous iPhone, various parties are making both precise and less accurate calculations to figure out what the new iPhone 5 cost to produce. Since Apple itself does not like to talk out loud about its partners, the research firm IHS has studied the iPhone 5 deeply. By taking the smartphone completely apart, and by tracing all the components one by one, the company could accurately determine the production costs of the new iPhone 5. The outcome; it costs $197 USD to produce the iPhone 5. That makes the new iPhone about $9 USD more expensive to produce than its predecessor, the iPhone 4s.

iphone 5

Costs of the new iPhone 5
The extra production costs of the new Apple iPhone 5 are mainly caused by the integration of a larger Retina screen. The older screen costs about $37 USD, while the new screen costs $44 USD to produce. Also the processor of the iPhone 5 is more expensive to produce than that of its predecessor, the iPhone 4S. On the other hand, some costs have also decreased, like the costs of the battery, WiFi and Bluetooth.

iphone 5

What does the iPhone 5 cost?
With an estimated retail price starting at $199 USD it seems that Apple is not making much profit on its new iPhone 5. On the other hand, the same phone retails for €680 Euro in Europe. Now start counting again… Despite the fact that we get confronted with negative stories about the production conditions in China once in a while, the new smartphone remains very popular. In fact the phone sells like hot cakes. Now that the demand exceeds the stock level, the pressure on the production side increases. The day before yesterday, a major riot broke out in the company Foxconn, where various components of the Apple iPhone 5 are manufactured. Over 2000 employees were involved in the riots. Maybe we should think once again before massively starting to buy the new iPhone….




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