Input Costs of the iPhone

Great graphic constructed by Mobile Phone Tracker coming to us via Nicholas Jackson of The Atlantic.    We were surprised that only $7.00 goes to Foxconn to manufacture each unit.   Here are some of Jackson’s favorite “facts and figures” of the iPhone’s input costs:

  • The average sale price of Apple’s iPhone 4 is $560. Of that, $7 covers the cost of manufacturing, $178 goes to components, $7 is taken by Foxconn, and Apple walks away with the rest, or $368.
  • As Nokia and RIM’s share of the global smartphone market shrunk between the second quarter of 2010 and the second quarter of 2011, that of Apple grew by more than six percent. Samsung’s share also grew over that period.
  • Samsung contributes the flash memory, DRAM memory, and applications processors for Apple’s iPhone 4. Those three components cost about $45.68 per unit.
  • Other components of the iPhone 4 and their cost: Battery, $6; accessories, $5.67; mechanicals and electro-mechanicals, $19.97; audio, $0.98; touchscreen control, $0.90; display and touchscreen, $38.50; power management, $1.51; bluetooth and Wi-Fi, $8.

(click here if graphic is not observable)

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One Response to Input Costs of the iPhone

  1. Anonymous says:

    That confirms my suspicion that Apple could assemble the iPhone using USA workers and still make a hefty profit. So instead of $7 per phone they’d pay, what, $60? That excess $53 gets recycled into the US economy instead of China’s. Apple could well afford it.

    With all the adulation for Apple and their immense cash hoard, why is the issue of Apple off-shoring their assembly non-existent?

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