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Apple’s iPhone 5: What Does it Cost to Make?

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iPhone 5 Components

Research teardown details why the new iPhone 5 only costs Apple $207 to make. The folks over at IHS iSuppli research firm provided a breakdown of the materials and virtual teardown of the iPhone 5 to give an inside look at exactly how much it costs Apple to make it.

The new iPhone 5 carries a bill of materials (BOM) of $199.00 for the low-end model with 16Gbytes of NAND flash memory, according to a preliminary virtual teardown conducted by the IHS iSuppli Teardown Analysis Service.

What Does it Cost to Make the iPhone 5?

inside iphone 5 components cost

iPhone 5 Components’ Prices Breakdown

iPhone 5 Components' Prices Breakdown

iPhone 5 Carries $199 BOM, Virtual Teardown Reveals – by IHS iSuppli

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I create websites with WordPress, and I develop Schema Plugins to help SEOs. I am a social network lover. I am also the night creature who works hard to keep this project up. Owner and founder of the Famous Blog.

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{ 17 Responses }

  1. Jignesh Padhiyar says:
    Not to cut the anti-Apple party here, but yeah there are two things that people often get wrong: - The amount of money Apple spends on marketing is almost twice as that spent by other mobile companies. Yes, it still is overpriced but that's also a clear indication of how confident the folks are at stealing your money and providing something that's more valuable than most Android smarties.Before someone tries to run me down, I do agree that Apple has been playing the game a bit too hard and could be losing a share of the market now, but the refinement on an iPhone can never be matched by that on any Galaxy smartphone.
  2. Harshit says:
    Interesting post but the retail price seems to be too much inflated to me. When a product is being made for $200, how can you market it for almost triple price. Definitely seems unfair to me.
  3. shasha says:
    Great,You have completely revealed the secret of Iphone 5. It was nice to know the exact cost.Thanks for sharing.
  4. Jawad Rafique says:
    That's huge profit they are taking. And because of their higher price I am seeing they are loosing market share as Samsung smart phones are really getting famous.
  5. Patrick says:
    Oh it costs so less to make that Apple Iphone and by the time it reaches the market for sale, the price starts soaring high. I feel this is wrong. I always felt being cheated by Apple and so I never bought any of its products. However, now that I know the truth now, I am still not going to buy it.
  6. Sneha says:
    Great artcle.. Thats what a real iPhone cost for which we so many dollars. Those who are freaking fans of iPhone should go through this article will never have one.
  7. Ron says:
    GREAT post! Our daughter works in retail cell phones...she is NOT an iPhone fan at all and will jump on us if we even mention it. This is a great list! Will have to give her a heads up on it as she loves all the info she can get on the phones she sells. Thanks again for the breakdown...Not surprised at the markup at all.
  8. Dean Saliba says:
    I am not surprised in the least, actually I am surprised it doesn't cost less to make. After the trouble I have had with the 3GS version I have no desire to upgrade to version 4, nevermind 5. :)
  9. Gautam says:
    ooo...ya really google has captured the market and Is selling At his own price.i have just got an Iphone and it's awesome but it cost me a lot in comparison to this....
  10. Hamza Sheikh says:
    Undoubtedly, Apple is master in marketing the premium products in really premium prices. They have already captured the market around the world with their premium designs, and the price rates. The most amazing touch of their marketing tactics, they have generated the demand of their products.
  11. Garen says:
    They are making some serious cash with the iPhone 5. I got an iPhone 4 and love it, but I wish they would lower the prices just a little bit. Love Apple though :)
  12. Andrei says:
    Apple have to get their money back, but not the money they paid to make the phone, the money they invested in marketing and branding. This is why they are selling lots and lots of phones at this crazy price - this is not like Nokia, for everyone, it has become for some time now a premium brand. Too bad Apple is on a down slope
  13. Vishal Rai says:
    Nice post, Apple is the king of the market in selling premium product, even they cost double the price of the compitative product, they feel more premium product in hands. Some time they worth it some times not.
  14. Joe Clark says:
    hmm.. so it means a huge profit over single piece... that's what we call a BRAND! I mean seriously, it's brand which sells. If people are crazy for your brand, you can make huge profits :-)
  15. Moravcsik Andra says:
    Awesome postThe problem is, sometimes brand owners actually do not know that they are loosing influence.They just hire a social media or pr firm and be happy with their monthly reports.
  16. Andrew says:
    Great post! I've been curious about this and it's great to see a detailed answer with some details. Thanks for sharing.