Real Cost of an iPhone 5

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iPhones are expensive, there is no doubt about that, but what do they REALLY cost.


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An article in zdnet showed the cost prices, and I thought I would share that information.

We will start with the cost of the battery, of which there are TWO possibles, depending on your iPhone model:

3.8V ~ 1510mAH battery $3.45
3.8V ~ 1560mAH battery $3.60

Have you ever had to replace yours ? What did you pay ? How much profit is there between what you paid and the actual cost?

OK, that was the cheapest component, so let’s look at the most expensive bit now.


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4″ Retina Display with Touch Screen $41.00

Ever been quoted for a new screen, and decided to get a new phone instead ?

That gives an indication of some of the component costs, but now the total phone cost:

16Gb iPhone 5c

$166.45 Materials and Manufacturing cost
$549.00 Sale Price
Retail and Corporate profit of: $ 382.55 ( 230% mark up on cost )

32Gb iPhone 5c

$182.85 Materials and Manufacturing cost
$649.00 Sale Price
Retail and Corporate profit of: $ 466.15 ( 255% mark up on cost )

16Gb iPhone 5s

$198.70 Materials and Manufacturing cost
$649.00 Sale Price
Retail and Corporate profit of: $ 450.3 ( 227% mark up on cost )

32Gb iPhone 5s

$208.10 Materials and Manufacturing cost
$749.00 Sale Price
Retail and Corporate profit of: $ 540.9 ( 260% mark up on cost )

64Gb iPhone 5s

$218.30 Materials and Manufacturing cost
$849.00 Sale Price
Retail and Corporate profit of: $ 630.7 ( 289% mark up on cost )

The changes in price for the materials to build the 5s models is only for the NAND memory component which has costs of:

$ 9.40 16Gb iPhone 5s which sells at $649
$18.80 32Gb iPhone 5s which sells at $749
$29.00 64Gb iPhone 5s which sells at $849

From this we can see that the 32Gb model costs an extra $9.80 to build, but they charge an extra $100 when selling ( 920% mark up on cost ), while the 64Mb model costs an extra $19.60 to build, but they charge an extra $200 when selling ( 916% mark up on cost ).

We can’t complain though, these companies that provide us with the essentials of life need to survive!!

Might just mention the cost of the camera in the iPhone 5 models:

$11.00 The 5c Model 8MP + 1.2MP Camera
$13.00 The 5s Model 8MP (1.5 micron) + 1.2MP Camera

Maybe I should buy the same bits and sell the ABCDiamond phone 😉  No, the name is too long, no one would buy it 😀


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