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Apple: iPhone 3GS Materials Cost Similar To Last Version

June 24, 2009
by Eric Savitz
Blogger and Columnist, Barron's, Tech Trader Daily

Eric Savitz

The bill of materials for the Apple (AAPL) iPhone 3GS is comparable to model it replaced, according to market research firm iSuppli, which conducted a detailed tear-down of the new version of the phone.

According to iSuppli, the cost of materials for the 16 GB version of the iPhone is $172.46, plus another $6.50 in manufacturing costs, for a total production cost of $178.96. The firm notes that this is comparable to its estimate last year that the 8 GB iPhone 3G had a production cost of $174.33. (Note that both models are priced at $199.)

As you likely know already, the key hardware differentiators in the new model are video capture, an upgrade in the camera to 3 MP from 2 MP, and a built in digital compass.

Read the rest of this post on the original site

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