Here Is a Breakdown Of iPhone 5 Component Costs [PHOTO]

Just days prior to the September 21st release date, we posted a virtual teardown of the iPhone 5. It revealed that each unit cost Apple $199 in components and an additional $8 for the labor. Whether those ballpark figures were correct, we will find out in this post.

The Wall Street Journal found that component expenses on the iPhone 5 totaled $197, just $9 above what Apple was billed for iPhone 4S components. The large reasoning behind the higher bill is the larger display and in-cell technology added to the device. In fact, those components cost an additional $7 compared to those in its predecessor.

Courtesy Of WSJ & IHS

If the pricing for the display wasn’t stunning, maybe the fact that the LTE & Wi-Fi radios cost $11.50 more on the iPhone 5 will be surprising. What really went down in cost was the memory, hiking down $8 on the iPhone 5.

IHS iSuppli, the researchers behind the graph shares their thoughts: (via WSJ)

“Most other phones built for LTE had much bigger displays, and everything else inside them got oversized,” said Wayne Lam, who worked on the IHS analysis. “That pushed the material costs higher.” Apple’s Retina Display on the iPhone 5 is the same width as the display on the 4S and about a half-inch longer.

A few other components, including the camera and processor had seen a hike in pricing by just a dollar or two. The battery and a range of other random components dipped in price by a total of near $4.

Does anything on the graphic above surprise you? I couldn’t believe that a processor upgrade that cost $2.50 was able to more than double the iPhone 5’s speed.

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • KosmoBo

    “…the LTE & Wi-Fi radios cost $11.50 more on the iPhone 5…” – they are $10.50 more 🙂

    “I couldn’t believe that a processor upgrade that cost $2.50 was able to more than double the iPhone 5?s speed.” This is the price to produce the processor. The price of the R&D is not included (since Apple is “selling” the processor to itself) and is huge…

  • consumer

    Thats the cost for hardware, but how much is payed to development and employees wages. This is miss leading of what real cost is and almost impossible for us to calculate the real cost of the phone.

  • GogogoStopSTOP

    Development cost are not in the cost of the product in GAAP accounting.